I was one of those people at one time, asking that question. I was given an explanation way over my head at the time. I remember rolling my eyes and zoning out.
I’ve since read info on PublishOx, talked with friends, & joined Coinbase (They give small tutorials, when you finish them you earn free crypto coins) It’s a great way to get started in the world of crypto. Here is my link if you want to check them out: click here: Use my Coinbase referral link get a bonus

Share how you answer people with the what is crypto question in the comments area below please. I’d love to have a simple way to talk about it with people. Others may also enjoy your comments and learn something new.
I have started suggesting they read up on it, look at articles on PublishOx, watch youtube videos. However, if they are not really interested & seem to just be critical of it I give a crypto for dummies explanation: (The kind I would’ve understood back in the day 😊 )
“Think of crypto as cloud based online coins, not like paper dollars or like regular coin kind of money, that always keep the same value. Crypto & NFT values go up and down like stocks on the stock market. If you hold onto them, like you do stocks you can make a good bit of money. Some places will even accept it to make purchases for items, cars, food, jewelry other things online. Some people collect it and trade it. There are games you can play to earn more, you can also use the crypto you earn in games to buy gear to use in the game itself. You should really check it out sometime.”
They may or may not ever get into it. The choice is theirs, I’m done trying to explain how much fun it is. I have wasted my time one to many times. If someone seems seriously interested then I enjoy talking about it with them.
I’ve enjoyed my journey learning about so many coins, Bitcoin, Solana, Ethereum, Ampleforth. I love learning new things and have a long way to travel on this journey in the world of Crypto.