Claim: Localbitcoins volume analysis shows that Bitcoin is gaining traction in countries undergoing hyperinflation or countries which have enacted severe regulations
Let’s get the definition out of the way. Economists usually follow Cagan’s description that hyperinflation occurs when the monthly inflation rate exceeds 50% according to Wikipedia.
And now take example of Peru which is mentioned in the article. It has seen increasing bitcoin trading volumes on LocalBitcoin
a. Hyperinflation - Inflation in Peru in 2018 has been less than 3% and doesn’t qualify as an hyper inflationary country. Moreover, the author has argued that the Peruvian Sol (PEN) has seen 10 percent inflation relative to the USD during 2018 - which is a measure of relative change in exchange rate. Even though inflation is a factor that affects a country’s exchange rate it is not the sole cause.
Source - https://www.statista.com/statistics/459336/inflation-rate-in-peru/
b. Regulation - According to Spanish language crypto outlet Criptonoticias, Peru does not have a specific regulation for the cryptoactives.
Thus, the increase in bitcoin trading volumes in Peru can neither be attributed to hyperinflation nor regulation.