Bitcoin is just a virtual currency, but it is used as real money to buy many things. There are many people who accept Bitcoin payments for items, including online stores and regular stores. Popular online stores accept Bitcoins including Newegg, Overstock, Microsoft, Dell and more.
In the United States, there are Reeds Jewelers, One Shot Hotels, Holiday Inn, and even pizza locations, restaurants and more. You can even use Bitcoin to buy addictive drugs, gambling, bullion, or even donate to charity. This is the reason why I like BTC.
You are right, bitcoin is a virtual currency or a vurtual money which you can use to buy different products online. It is like an ordinary fiat money to buy some products but the thing is you can buy products online and it is much easier and much faster than shopping to malls and other markets.