1. That question is like asking whether rain can serve as a hedge against expensive local water and irregular tap water supply. Ofcourse, it can. People could invest in reservoirs of different sizes where rainwater can be stored and used as alternative to expensive local water supply. Same with Bitcoin... Buy what you can afford for long-term use. It does really increase in price/value, depending factors that cause price or value to increase.

2. Fortunately, regulators can't regulate rainfall. It's regulated already. However, they are free to collect as much rainwater as possible in their central water reservoirs. Same as Bitcoin.
We crypto enthusiasts prefer collecting our own rain water ourselves in decentralized manner. Those who wish to depend on governments and regulators could join the central water supply system. Here we will keep teaching people who depend on rainfall how to safely collect and use the rainwater.
Bitcoin doesn't need centralized regulator, it doesn't make sense to regulate rainfall or does it? Maybe they mean regulating bitcoins like remain water on their centralized system. I'm not against that... It may be necessary to create such system for those that are not free yet.