Hoarding yes, but the money that the poorer have, will circulate to certain individuals with the brightest ideas through capitalism. Once those individuals begin to collect money, the cycle is bound to happen again. Capitalism seperate society from the haves and have nits, but it does it in a very natural and fair way.

I think what you end up with is still the potential to be hoarded by members of society.

There must also be a consistent ability for one to exchange the crypto for cash in order to pay taxes. That means that any coin to become as wide spread to be called a currency, would need to have measurable and stable value. Or, the government would have to accept the crypto currency.

Great idea, if you have a third world government that's trying to do good. i
In a society that has a strong printing press, it's near impossible to do withoutbpissing off the central government. The inability to control the money supply means that you rely on regulation to keep banks in check (banks that will eventually loan out crypto). We're back to square one, but atleast we solved the how money is created by numbnuts issue.