DATA SCIENCE AND BIG DATA ANALYTICS
E-commerce is realized to grow faster on the internet. Elements noted to grow in line with e-commerce are online banking and virtual cash like Bitcoin. Bitcoin is considered a profitable transaction method. Bitcoin has not fully developed, having no legal operations in some countries. Bitcoin operators are pushed to gain legal acceptance of the Bitcoin operations in those nations, accordingly. Some countries have Bitcoin transactions taking root on illegal measures. A good example is the Bank of Indonesia, where Bitcoin is not recognized as an alternative way of making payment. Thus, the main issue discussed in this research is the legal aspects included in Bitcoin operations. Also, another focus would be on how the government gives legal protection to Bitcoin users. The discussion arrives at the private law protects Bitcoin users. Bitcoin users get protection from privacy laws because the interaction is limited between individuals and public law. Thus, the state has the role of providing legal protection to Bitcoin users. The spread of technology to the world has contributed to significant effects on the economy. For example, the economic transactions have been left by many, and people have switched their focus to electronic transactions. E-commerce is part of the technology that uses electronic transaction, rampantly.
Globalization, which has contributed to the growth of technology, has posed risks to Bitcoin users in their transactions. Technology, with the help of globalization, has a significant impact on the economy that has provided efficiency and effectiveness. E-commerce has brought more benefits to the economy than the conventional-based trade. Online trading is one of the current transactions boosted by technology. Examples of these online payments are online banking, pay pal and inclusion of virtual currencies like Bitcoin. Bitcoin is a form of cryptocurrency manufactured by cryptography. Various nations apply Bitcoin as their form of payment like the United States and Denmark. An increment in the use of Bitcoin is directly proportional to making transactions. Illegality in using Bitcoin reduces the protection of its appearance in countries that have not approved the legality of the online currency. Bitcoin transactions are executed in the peer-to-peer form, making it decentralized. There are three parts that form Bitcoin transactions, which are the block chain, mining part and the wallet. The block chain proves all the transactions. Bitcoin miners hold old transactions and keep a record of the new transactions. The wallet has a private key, which allows the owners of Bitcoin to add Bitcoins to the block chain. Hashing boosts bitcoin security by linking one block to the other in the block chain. Each block keeps a store of the previous hash, and the current hash is used maintaining its value. Private law is responsible for the legal relationship amongst Bitcoin users. Legal subjects provide legal protection in Bitcoin transactions. Legal instruments provide protection to all E-commerce transactions users. Economic stability is achieved if the payment system is maintained. Policies are put in place to control the legal transactions that include Bitcoin currency in various nations. Regulation of the payment systems included in the Bitcoin transactions boosts the legal measure of the online payment method, accordingly. Thus, the Central Bank has the mandate of putting into consideration Bitcoin as a legal method of making payment too. Central Bank has recognized using Bitcoin as the only online form of payment, in connection to the other traditional methods, making Bitcoin currency legal.
Bitcoin is made legal by the help of public law, private law and state administrative accordingly. Bitcoin has no specific regulations in countries that apply it as a means of payment. The digital currency industry always updates the digital settings related to Bitcoins too. The use of technology has made regulatory issues concerning Bitcoin vital. Based on technology, Bitcoins has features that make it incapacity to pose disruptions to various and institutions. The peer-to-peer Bitcoin transactions mean there is a legal relationship between the parties involved. Most countries have Bitcoins without specific regulations, running as a method of payment. Some policy recommendations from various states have made the use of Bitcoin unstable in achieving its legal threshold. For example, the European Central Bank is one body that has such policies, which make Bitcoin unlawful in European nations. The European Central Bank makes Bitcoin appear as a black market operation, thus disqualifying it from attaining legal operations. Central Bank plays a significant role in the realization of the legal weight of the use of Bitcoin in different nations in the world. The Central Bank is trusted with both duties and obligations, which are used in maintaining a stable economy in nations using any payment method. Private criminal and legal law tools can be used as a method of solving problems to cover the legal vacuum associated with the execution of Bitcoin currency. Bitcoin is an online method of payment that would save lives in future because of the looming technological era anticipated ahead. Thus, making Bitcoin transactions legal fall in line with the expectation of future generation and satisfy their requirements, accordingly.