A much more radical monetary reform proposal, called labor money, was popular among some socialist critics of capitalism in mid-19th century Europe.(1) The proposed reform was to replace gold and silver commodity money with money that would represent labor value directly rather than indirectly as is the case with a money commodity.
But unlike other monetary reform schemes, bitcoins are very 21st century, based as they are on modern computer technology and the Internet.
According to Wikipedia: “Bitcoin (BTC) is a cryptocurrency first described in a 2008 paper by pseudonymous developer Satoshi Nakamoto, who called it a peer-to-peer, electronic cash system. dollar be defined in terms not only of gold but also of silver, at a fixed ratio of 16 to 1.
A basic flaw in this proposal was that while at one time the ratio of 16 to 1 more or less reflected the actual relative labor values of gold and silver bullion, by the late 19th century the value of silver was falling sharply relative to the value of gold.
Given a choice of using either silver or gold coins at this ratio, people would have chosen to pay off their debts in cheap silver—which is why bimetallism was so popular among highly indebted small farmers and businesspeople—while using the cheap silver dollars to purchase and hoard the more valuable gold dollars.
Marx also explained that the proposed system of labor money was unworkable in practice.