this post was submitted on 22 Dec 2023
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The simulations could be imperfect simulations. So, each nested simulation would lose fidelity, simulate a smaller universe, or simulate a universe with less life. I think one hypothesis I've heard is that wave functions are an approximation, and the simulation only fully simulates particles when they are observed. Kinda like how games do level-of-detail optimizations when you are further away from objects.
Edit: Another possibility is that nothing says the simulation we're in started at the beginning of the universe, it could've just been given initial conditions and started yesterday for all we know.
I don't know if we are in a simulation, but I think it's plausible. I think a God (at least of the religions I know of) is implausible, but possible. I kinda like the many-worlds hypothesis better than simulation theory, but I guess they're not exclusive.
There are indeed ways you could make it work, but then you add more hypothesis and thus the cost of the simulation hypothesis increases.
Optimizations are indeed necessary, but just like the player is something special in a game, the observer would need to have a special status in the universe. I don't like this idea because the history of science always moved in the direction of making us the observers less and less special.
Moreover if life spreads in the universe, the simulation would encounter a scaling issue with an exponential growth of the numbers of observers.
I agree with you that in the end we just don't know, it's fun to push ideas to their limits!