Why Elon Musk says we're living in a simulation

Elon Musk thinks we are living in a simulated reality. Nick Bostrom think those chances are more around 20 percent. The chances of human kind participating in a simulated reality is broken down into three options: 1) humans go extinct before we are able to run a simulation of this size. 2) Humans are uninterested in running ancestor simulations. 3) We are currently participating in the simulation.