The OP is correct. Bitcoin, in and of itself, has no intrinsic value. However, this does not prevent it from being P2P electronic cash. All you need is a community to agree that Bitcoin can be used a medium of exchange. Without a community that agrees to this, Bitcoin is basically useless.
Now one can argue that Bitcoin is not suitable as money with the following traits.

Is it fungible? For the most part. One can argue that you can distinguish one UTXO from another UTXO, and this history can be used to make one UTXO more valuable than another.
Is it durable? For the most part. I suppose one can argue that it is possible to erase all copies of the Bitcoin blockchain. Also, one can lose their private key, and no longer have access. However, the Bitcoins are still registered on the blockchain as UTXO. The entries have not been destroyed.
Is it divisible? Yes, currently it is divisible down to one satoshi.
Is it portable? Yes, in several forms.
Is it acceptable? Yes, as long as someone has a connection to the internet, they can find someone to accept it, ATM
Is it uniform? For the most part. However, the community obviously cannot agree exactly how much value a Bitcoin represents. Thus the high level of volatility.
Is it limited in supply? Well it is supposed to be. However, as we recently discovered, there could be code introduced that could effect this either deliberately or unintentionally.