We do live in a simulation. Change my mind.

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Point of life is something that starts out of one simple, to possibly numerous, increasing in complexity as we develop. First step would be to avoid extinction and reproduce. As we became more and more conscious, we can process our existence, therefore one shall make full use of it (with responsibility, that causes the most positive effect overall) like enjoy life as long as you exist. The next step could be guessed, but not yet too clear (for us at least). We need to evolve mentally more. This system is just like a pyramid on its head, the base level is primitive and simple, then on that comes another more advanced, that takes priority. The leveling is going on (depending on the species, how far they get). The whole progress is driven by the force of development. To reach the second checkpoint, we needed to get through and maintain the first. The more you developed, the more point of life and existence you may discover.
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The optimal mind with the right thinking method, is something thats necessary to bring reality, in case to maintain existence in an adept biological form. We need to realize our weakpoints and bring control over them. Without decent control the biological existence is unstable and becomes destructive before faces extinction. The right thinking method could be when the individual is keeping the grand image in sight. When it faces something uncertain, it develops several hypothesises then tries to find the right one. Its needed, because we live in the same universe, and we experience the same things, only the processing differs. The different processings are constructive as long as being shared, and enterly accept when a hypothesis fails or succeeds. The right hypothesis becomes fact, in this case, overwrites all other hypothesises, so we can go further. Time to time, we experience things those can not be connected. Its the same as you would have two small pictures inside one big puzzle. You have no parts yet to connect them, that doesnt mean inmeditadely that one is true and the other is false. If one information or even picture can not be connected anywhere, we still should store it, or start to find other infos those fit around, and build up an independent picture. It will either become a precious part of the big picture later on, or will get overwritten. All is needed that we accept its fail or success, and move on.
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The conscious may could be viewed like material. We can not clearly define what conscious is and what isnt (although in my humble opinion: consciousness is the reflection of realization of one's surroundings), but we are certain, that it exists, at least in ourselves, in somewhat form. And thats the key, if we handle conscious as material for the sake of play of thought, we will see that it can have different forms and appearances, like water: it can be a solid, liquid and aeriform, depending on the given conditions. But it will be still made out of the same particles, the only thing that changes is the pattern, that how are these (information) particles connect and/or relate to each other. So then, we can see it can possess three completely different forms and properties, but all of them made out of the same particles. Therefore I can say a fly is just as conscious as us, but we have "ice" form and they have "vapor" form of it. Another important property of the conscious, that it is really just a cluster of informations connected together in a decent pattern, in order to actually form consciousness. An amount of information only being packed together with no processing ability, like a hard disk, is not conscious (also, because of this I think anything binary never can truly be conscious).