Let me focus on the bolded part here:
I know that in school, we were always taught that $0*0 = 0$, because anything times zero is zero, but wouldn't it be true that you are saying you have zero quantity of zero, meaning you cannot end up with zero (because you just said you do not have zero).
Original interpretation
If I have $0 * 0$, does that mean that I don't have $0$ (and so I must have some other number besides $0$)? That may seem like a natural way to continue the pattern:
- Suppose I have $0 * (1\text{ cat})$. This means I don't have a cat—it is not the case that I have a cat.
- Suppose I have $0 * (1\text{ liter of water})$. This means I don't have any water—it is not the case that I have water.
- Suppose I have $0 * 0$. Does this mean that I don't have nothing—it is not the case that I have nothing (and therefore I must have something)?
As a matter of fact, $0 * 0$ is $0$, so the pattern must not hold here. But why doesn't it hold?
The problem is that the English word "nothing" is a special word which, unlike most nouns and pronouns, doesn't refer to something. Instead, causes the verb to mean the negation of what it usually means. (If I say that "I hear nothing", I'm not saying that I hear; I'm saying that I don't hear.)
So we write down the sentence "I don't have nothing", and then when we read that sentence, the word "nothing" changes the meaning from "I don't have" to "I do have". But we don't want that! We want to keep the original meaning, which is "I don't have".
We need an interpretation that doesn't change meaning when we put the number $0$ into it.
A more robust interpretation
As you know, $0 = 1 - 1$ ($0$ is the same number as $1 - 1$). If I have one item, and then you take away one item, I am left with zero items.
So this means we can interpret "I have $0 * x$" as meaning "I had $x$, but then you took away $x$".
This interpretation shows why $0 * 0 = 0$:
- Suppose I have $0 * (1\text{ cat})$. This means that I had a cat, and then you took a cat from me. Now I no longer have any cats; I have nothing.
- Suppose I have $0 * (1\text{ liter of water})$. This means I had a liter of water, and then you took a liter of water from me. Now I no longer have any water; I have nothing.
- Suppose I have $0 * 0$. This means I had nothing, and then you took nothing from me. Now I still have nothing!