You're confusing crypto-currency with the far simpler notion of virtual-currency. Virtual currency IS simply a currency. And it is centralised. The value is determined by the game company, with items having value depending on either what the game-makers state or on what the free-market within the game state. The exchange rate for fiat currency is determined by the game-producers, and is in effect a loyalty reward: play the game long enough, generate sufficient in-game wealth and be rewarded with a real coffee etc. This is entirely different to crypto-currency - other than the fact that they are both effectively classes of asset. But then so is a share, so is a book, so is anything that one places value in. Method of batter? Is that for doughnuts, or for fish? Please Register or Log in to view the hidden image! Yes, Bitcoin is an asset that is being traded in exchange for illicit goods. But it is also being exchanged for legal goods. Until recently the Steam game platform accepted BTC, as do many other legitimate companies. Unfortunately the vastly changing valuation has meant that these companies struggle to keep up with setting an exchange rate so have likely stopped accepting. Steam have stopped as they were finding that the value of the Bitcoin was changing so quickly that the price was out of date in the time they had processed a transaction, so were constantly having to do refunds or additional charges etc. The one thing Bitcoin has over a fiat currency is anonymity - hence the trade in illegal goods. But crypto-currencies are not a scam per se. Bitcoin certainly isn't. The valuation may well be going through a bubble at the moment, but that doesn't make it a scam.