The Impact of Celebrity Endorsements on the Cryptocurrency Industry Through a Multi-Level Latent Class Analysis and Software-Based Approach. (Multidisciplinary Study)

This research paper presents a multidisciplinary approach to investigating the emergence, functioning, and impact of cryptocurrencies on the global financial market. Drawing on mathematical and psychological methods, the paper analyzes the factors that contribute to the success of celebrity endorsements and the potential risks associated with investing in virtual assets. The first section of the paper provides an in-depth overview of cryptocurrencies, including their history, technical features, and regulatory challenges. This section examines the differences between various types of virtual assets, as well as the potential advantages and disadvantages of investing in cryptocurrencies. The paper also explores the impact of blockchain technology on the digital market and the implications of the unregulated nature of cryptocurrencies. The second and third sections of the paper focus on the psychological and mathematical aspects of cryptocurrency investing, respectively. The second section analyzes the relationship between personality traits and the likelihood of purchasing a cryptocurrency based on a celebrity endorsement. This section draws on Howard Gardner's theory of multiple intelligences to explore the qualities that make people more susceptible to investing in virtual assets without prior knowledge. The third section delves into the mathematical factors that contribute to the success of celebrity endorsements and the artificial growth of cryptocurrencies. This section involves developing software to calculate the artificial growth of a cryptocurrency over a 24-hour period and analyzing the data to understand the underlying factors driving its value. The paper concludes by offering a qualitative and quantitative analysis of the risks and benefits of investing in cryptocurrencies and proposing a Multi-Level Latent Class Analysis (LCA) to inform investors of the complexities of investing in virtual assets