This is actually a form of encryption (See - https://en.wikipedia.org/wiki/Threshold_cryptosystem). It is encrypted in the sense that combining any number of pieces smaller than the defined threshold won't leak even a single bit of information.
The difference is encryption is usually associated with obscuring data with a key that you keep secret. In this system you broadcast out all the pieces needed to reconstruct the data. No secrets, just inconvenience due to distribution. It is not very inconvenient for an adversary that is already collecting all of your communications.
