@Misib First of all... Cliché*. Please do not try if you can't english.
And owing to your evident lack of ability to understand the english language, I'll do you a favour and explain here what that 'letter' was all about. It supposedly contains his friend's cultivation technique and also a sliver of his consciousness that he left within it. That was why his friend appeared when he opened the letter.
Just in case you didn't catch the subtlety, the answer to your remark, ergo, "how do you even know mc is there", is that the letter contained a fragment of his friend's soul. That was why his friend was able to converse with him, and not, like how you seemed to comprehend, that it was a recorded holographic message for his friend.
As for the 'tournaments', that is indeed a trope. A standard template storyline where people with vested interests scheme to take hold of the prize (think rigged elections).
With regards to your "mmo logic" remark, in case you're not familiar with the genre, people typically carry pouches or inventory rings where they store their stuff in. (Think handbags but less obvious). So yes, they "drop" stuff like a fuckin mmo.
In any case, you don't seem to have paid any attention to all the dialogue. So my only advice for you is that this probably isn't for you, and that you should probably stop wasting your time. Also, go back to school and relearn english.