Think of the situation in terms of Emulation.
That is at least a word that can be thought of in terms of REAL LIFE. If you were to see someone doing something that you thought was impressive or looked like being fun - you could attempt to 'emulate' their approach to the thing they were doing.
In computing terms, emulators abound (if you are interested in them and bother looking for them).
If you were to travel back in time, almost 30 years ago, computers were in their infancy as far as the domestic variety were concerned. The first domestic computers available to the average punter were things like the beasties that came out of the Sinclair factory in the UK, and the Commodore output from America.
If you were to try and play with, let alone find, a Sinclair Spectrum 48K or a Commodore 64, you might have your work cut out. You can however, run Spectrum and C64 emulators on a modern PC. Once the emulator is running, you can then load the Spectrum or C64 program into the emulator and play the game.
In terms of compatibility, you cannot run a Spectrum 48K program or a Commodore 64 program on a PC, but the emulator will allow it. So the emulator fools the program into thinking it is actually running on a Spectrum 48K or a Commodore 64.
If you were to push the program too far, or interfere with its code (using Peeks & Pokes) you would obviously damage the program, but ONLY inside the emulator - because the PC is kidding on that it is another machine.
The enxt time you start the Speccy or C64 emulator, everything is back to normal because strictly speaking neither of them actually exist - they are VIRTUAL.
The same goes for running older versions of PCs. Instead of hunting far and wide for a PC equipped with an 80286 processor so that you can fire up MS-DOS 4.2, then run a DOS program on it - you simply run VMM and create a virtual 80286-machine, complete with MS-DOS 4.2 mounted on its own virtual hard drive.
If anything goes wrong, even if you get online with it and get a virus infection, it doesn't matter - because the 80286 PC doesn't actually exist - it is also virtual, just like the Speccy or the C64.
'Virtual' is more a buzzword (and a hindrance when trying to understand it) - 'Emulator' is far easier to understand and basically exactly the same thing. :)