It would be a great idea, but you can not skip the Government. If you pay your appartment or house service rent, incl. electricity, water and sometimes gas expences, you could never pay it in virtual currency, because Government will never accept it in their accounting. NEVER. Yes, you could pay, in virtual money, some private services which may accept it, but it ends in Government money exchange anyway.
Now let's imagine there are no countries, no governments, and no "static" currency - so everyone switches to the virtual currency. Then there will be more virtual (crypto) currencies than now there are countries. As proposed by a crypto currency, it is limited.
But think carefully, it is limited not to its own - it's limited to the human kind.