Bitcoin on the other hand introduced a unique concept to the meaning of "money". A concept that always had unlimited supply, was controlled and printed by the government and was centralized suddenly got expanded. Now money can have limited supply, doesn't have to be inflationary, can be decentralized and censorship resistant, can be safe and fast.
I don't like comparing things in black and white so I won't say if bitcoin is better than fiat or not. Bitcoin is a good currency, it does what it was designed to do and that's the important thing.
While Bitcoin can be considered money, I think it's important to remember that it's probably not how most people see or use it nowadays. Some trade Bitcoin, others use it as a store of value, and probably a minority of people actually treat it as money and spend it on goods and services directly. Moreover, while I'd like to see the future where Bitcoin is more adopted as money, it's also important to note that it has disadvantages in comparison with fiat that present serious obstacles to it being used for everyday purchases. I'm talking about high fees and slow transactions. So while in theory it's all great, in practice, Bitcoin isn't very efficient for everyday money usage.