It could be yes.

1. Because people didn't want to spend their Bitcoin after they bought it, they prefer it to store a value which is hoping that the amount vs to dollar will increase and sell when they saw a profit.  Maybe 40% of it is used as an alternative currency the rest could be the holder which is they hold for profit.

2. As I can see in this case, those governments adopting Bitcoin are implementing their own regulations to the users but not directed to the Bitcoin itself and I think Bitcoin wasn't a failure in this case and it's still free from government control.  Different countries have a different approaches.