- The simulation hypothesis proposes that all of existence is a simulated reality, such as a computer simulation. This simulation could contain conscious minds that may or may not know that they live inside a simulation. This is quite different from the current, technologically achievable concept of virtual reality, which is easily distinguished from the experience of actuality. Simulated reality, by contrast, would be hard or impossible to separate from “true” reality. There has been much debate over this topic, ranging from philosophical discourse to practical applications in computing.