Elon Musk Thinks You're In a Simulation: The Heart Says No, The Brain Says Yes

Elon Musk says it’s more likely than not that you live in a simulation and not a physical universe.

In 2021, he reacted to the 49th anniversary of the 1972 tennis video game Pong by tweeting, “49 years later, games are photo-realistic 3D worlds. What does that trend continuing imply about our reality?”

It’s an expansion of a theory he promoted in 2018 that as video games and augmented reality become more advanced over time, they will be indistinguishable from reality. And if humans are able to create trillions of simulations that are indistinguishable from reality, who is to say that an ancient, more advanced race didn’t create this universe as a simulation, too?

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Proponents of this theory highlight a few phenomena that, if you’re actually living in a simulation, would make it seem obvious in retrospect. For instance, there’s the speed of light — a universal speed limit that would be useful for a simulation that needs time to render. Many philosophers over the centuries have proposed this idea — most recently Swedish philosopher Nick Bostrom in his 2003 essay “Are We Living in a Computer Simulation?”

It may be impossible to prove whether or not this universe, lives and bodies are “real” in the physical sense. But one thing is certain: The augmented reality and gaming market is booming. And it’s making investors a lot of money.

Meta Platforms Inc. has had a tough 12 months, with the stock selling off sharply amid falling revenue and mass layoffs. But in October, the company announced its Quest store sold over $1.5 billion in games and apps to date. The gaming company Electronic Arts Inc.recently reported a net income of $311 million — a 52% increase year-over-year made possible partly by investments in augmented and virtual reality.

The gaming industry is forecast to hit $74.93 billion by 2026, according to Market Research Insight. The report lists over a dozen major players in the industry, from Activision Blizzard Inc. and Apple Inc. to NetEase Inc.

Some investors looking to play the trend more aggressively have been claiming an early stake in startups in the space through equity crowdfunding. One such company that has been gaining traction is Gameflip, which already has six million users on its platform and has facilitated $140 million in gaming sales.

It’s clear this trend is here to stay, and the recent decline could present a serious opportunity for investors looking to capitalize in the event of a rebound.

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