Bitcoin is not far from it.
Though it needs more improvement yet it has a great chance to be one world currency or money in no time.
I can see too that bitcoin will be the next generation of money. Since we are already starting it and the price of it seems to be good already and many people are already using it. There's one more thing left that bitcoin should be furnished and good to go when the gov't started to realize that this will be one of the best investment and currency.
I think its far from reality. Bitcoin can be far from being a money but instead it can be a good means of transacting it in the near future. But the idea of having bitcoin as money is believed by many to happen but in my case its way too far and impossible.
No you do not understand the reality as the reality is that bitcoin is already a form of money and it is taking the place of money and will replace the fiat with itself on many places of the world financial system as it is already doing on online world. Like it have replaced paypal from a large number of companies on internet.