Cryptocurrency - help me understand please.

My good friend the chiropractor has sunk between 15-30k into this. The bulk has gone into 'DRIP' and some "Piggies" kinda deal. I struggle with the terminology and thought behind all this as I am relatively stupid and struggle with technology as it is.

So, to me - it's like I take a lump of firewood, and announce to the world that it is worth $1,000,000. Then I split it into a thousand pieces and sell it to anybody who believes that it is worth that. Maybe back it up with some slick marketing campaign and social media pumping to help out.

I've always struggled with the way world finances work. I understand the paper currency we have in our wallets depends on the majority having faith in it - that it is bartered and traded, exchanged, and represents the ability to buy, sell and exchange.

Same with other commodities - gold, or silver - you can't eat it, or lay it down at the local 7/11 to buy goods, but most agree it has value, based on the previous paragraph - faith.

I've always thought , at least since I was 30 - that if I know a farmer that raises cattle, and that I know how to raise a garden and can/preserve, can chop firewood, that I can survive. These to me are useful relationships and skills. I can drive for the farmer, wrench on his truck, process wood for warmth, and survive at least cold winters. And eat.

I am struggling with CryptoCurrency.

So - Confirmation Bias (thanks @double yellow) for hipping me to the term - tells a lot. If you're heavily invested in it with thoughts that it'll be a no-brainer winner - then you won't be able to rationally explain it to me.

This isn't a fight - I hope anyone invested in it is a sure fire millionaire , but to me, from the limited research I've done, it falls under the same red flags as Ponzi schemes, and Pyramid schemes.

My friend has more than enough to lose 30k - and I commend him for his bold investment, but lately he comes across as a maniac with all the terminology and speak about faucets and drips and piggies and farms. And I wonder if I'm the idiot.

All comments well appreciated .

 

So - is it a case of 'First in - First out?"

 

What is a 'solid project' ??

My buddy keeps telling me this 'developer' is 'trusted' - yet won't show his face on anything .

He's expecting to drag out $865,000 in 6 months time . . . I just don't understand the backing of the value on these 'things'.