Bitcoin is a form of money, just like the USD, that can be used to exchange for things like goods and products. The difference is that currencies like the USD is affiliated to a particular state (for USD, it would be the United States), while Bitcoin has no official affiliation to a particular state. Bitcoin is in the family of digital currency or more appropriately crypto-currency that is controlled by cryptography, allowing it to be untouched and unregulated by a particular political or financial entity.
So yes, Bitcoin is a currency which is a form of money.
Yes, I agree. Bitcoin is not actually money, its just only a representation of money. That is why it is so called a digital currency. It functions like money but it is use only through internet. It has no physical appearance like money.