Would someone please explain this crypto stuff

”At a guest lecture at a military academy when the price of a single Bitcoin neared $60,000, I was asked, as finance professors often are, what I thought about cryptocurrencies. Rather than respond with my usual skepticism, I polled the students. More than half of attendees had traded cryptocurrencies, often financed by loans.
I was stunned. How could this population of young people come to spend time and energy in this way? And these students were hardly alone. The appetite for crypto has been most pronounced among Gen Z and millennials. Those groups became investors in the past 15 years at previously unseen rates and with exceedingly optimistic expectations.”

A frazzled-fried distracted mentally ill currency for a frazzled-fried distracted mentally ill generation.

I appreciate your views but you are not addressing the original question(s).

1. No idea. Brady was paid a lot in fiat so he don’t care what happens to crypto

2. Not safe

Here is the closest analogy I can think of. Go to your bathroom and take a piece of toilet paper, then classify that piece of toilet paper as money (we'll call it crapto for this illustration). You might be able to convince someone out there that they might be able to buy your crapto and sell it to someone else for more than they paid for it. As you convince more people to want your crapto, you will issue more and people will want to store that some place secure. We will call it a vaulted toilet. Now the toilets are only secure so long as the building supervisor is honest or can keep others from making copies of the building key. Now, there is nobody regulating who can supervise the toilets, you simply put your full faith into the building supervisor. Now, some people forget they have crapto and it just sits in a toilet with no way to get it out, ever (about 20% of bitcoins have been lost forever). And sometimes the building supervisor may not be completely honest or incompetent and he or others will take crapto out of your toilet and transfer it to toilets that they accidentally flushed. Eventually, the market may decide that crapto is worth nothing more than toilet paper.

Bankman-Fried explained it himself in an interview he gave to Bloomberg's Matt Levine.

He explained that farming was simple. You create a token, call it X (his was FTT) and place it in a toy box, something that gives X some panache. Convince others that when X goes in the box, something magic happens and the tokens, X, increase in value.

Make sure that you give generous returns in terms to tokens to stoke interest, but make sure you keep the float low so that you can give out more tokens.

Matt Levine commented that this seemed like a Ponzi scheme that relied on new people falling in love the box and exchanging fiat currency for X. Bankman Fried said yes.

1. FTX has a long list of people they owe money to, this includes people with wallets. People that are owed money including wallet owners are creditors.

2. It is not that simple. Imagine I take money from various people and put it in a shoe box. If I take money out of the shoe box to buy myself something it is not clear who I stole from. Essentially a percentage from everyone.

It's simply an alternate currency