If a simulation is indistinguishable from reality, it doesn't prove anything about the nature of reality. However, it doesn't rule out the possibility that this reality is some form of simulation, since we are incapable of detecting the difference between veridical perception and hallucination.
This assumes at least two things: (a) that we will be *able* to create a simulation someday that will in fact become indistinguishable from reality, and (b) that we will *want* to perform this experiment when we get there.
The likelihood that we are at the "top of the chain" is approaching zero. However, the idea that the chain has a start is an axiom that we cannot prove, and without it the word "simulation" loses a lot of meaning.
when thinking likes this. i think of the classic: ''if there was a god why would the world be in such a bad condition?''. because we are just piloting our own society, why not the universe for that matter. Brilliant