The simulation bit is just being facetious because I think its a funny thing to think about

if you think about it the holographic principle is telling us that the universe actually running in a compressed format. There are way too many quantum states to simulate at once, so for the universe to run efficiently these states need to be compressed. The holographic principle makes this explicit: all of the information in the 3d bulk is encoded on some 2d boundary of this space. What happens when there is too much information in a small region of space and it can’t be compressed further? Boom, black hole. Neat hack universe engineers.

gn