In a country with strict currency controls crypto is little better than foreign currency. They need to pay their bills in local currency. Their corner grocer wants local currency. Their taxes will be in local currency. Crypto users are in a worse situation than people using foreign currencies since they have to deal with not just black market exchange rates but wildly variable crypto exchange rates. They don't get to just HODL because they need to pay bills. They have to accept whatever that day's wild value swing of their crypto holdings.
The places with broken currencies don't have strong rule of law. The authorities will shake people down for their wallet passwords as effectively as they do anything else.
The masses in broken economies turning to crypto is a fantasy.
Other comment has addressed the rest, I just want to point out that Bitcoin (and most other cryptocurrencies) are not _inflating_, they're _deflating_.
If the buying power of a currency goes up over time then it is deflating.
While this makes it (arguably) good for speculation, it actively punishes using it as a currency since what you buy today will be cheaper tomorrow. This - in turn - punishes the poor that would have to use crypto for necessities (food, shelter, water, etc.) since they will always have to buy necessities when they are expensive (today) rather than when they are cheap (tomorrow).
Just felt compelled to add this since a lot of crypto discourse talks about how the traditional market is seeing record inflation or whatever, and crypto doesn't suffer from as much inflation. While this is _technically_ true, the reality is that a deflationary currency is significantly worse for the people using it than an inflationary one. Especially when it comes to things like concentration of wealth in the hands of a few rich people.
It's hardly usable in countries with stable economies, but in countries like Turkey and Argentina I can see crypto being a better alternative than the official currency. It just comes with the caveat that the unregulated nature of the money means it can stop existing or become worthless without warning and that a power or internet cutoff will make your funds useless.
Smuggling foreign currency can be illegal or even dangerous but crypto can often be bought from the comfort of one's own home.
Balancing that risk against the terrible mismanagement of one's nation's official currency can be a worthwhile effort for a very select group of people.