Bitcoin is actually considered as digital money. It has value but its role is quite different from physical money. It could be a currency in the future but it doesn't mean that t will be replacing any currency. We only need adoption and acceptance to make it the most valued currency.
Its value is determined by demand. If people need it and believe in its future, Bitcoin is growing. Suppose, very soon, it will be accepted as money. Why not? If you are able to buy things for it, it is possible.
It is indeed since if you really look at the previous price of Bitcoin before it was just a cent per BTC because the demand is still low. But when people start to adapt to it and start using it as a mean of payment for every transaction across the globe. Then the price starts to grow as more people starting to use it then it spread like a wildfire across the globe.