Effectiveness of logical fallacies in cryptocurrency advertisements: relating gullibility and logical fallacies using cryptocurrencies

Abstract

Two logical fallacies seem to be related to cryptocurrency advertisements: the Bandwagon Fallacy and Argument by Prestigious Jargon. A study was performed to determine any influence these fallacies have on the amount of money invested. Reasons why people might fall for these fallacies were also tested in the study, including gullibility and knowledge on logical fallacies. A previously tested Gullibility Scale was used to determine participant gullibility and a quiz over logical fallacies was used to determine knowledge. It was hypothesized that the logical fallacies would cause an increased amount invested by participants, that a higher score on the Gullibility Scale would correlate with a higher amount invested, and that a higher score on the logical fallacies quiz would correlate with a lower amount invested. Results showed that most hypotheses were incorrect and did not have the sufficient evidence to be proven.