"One thing that later generations might do with their super-powerful computers is run detailed simulations of their forebears or of people like their forebears. Because their computers would be so powerful, they could run a great many such simulations.
Suppose that these simulated people are conscious (as they would be if the simulations were sufficiently fine-grained and if a certain quite widely accepted position in the philosophy of mind is correct). Then it could be the case that the vast majority of minds like ours do not belong to the original race but rather to people simulated by the advanced descendants of an original race.
It is then possible to argue that, if this were the case, we would be rational to think that we are likely among the simulated minds rather than among the original biological ones. Therefore, if we don’t think that we are currently living in a computer simulation, we are not entitled to believe that we will have descendants who will run lots of such simulations of their forebears. That is the basic idea."
This is a fun paper, and it's led to lots of debate. If you want to dive deep into it, head to the simulation argument website, and you can spend days digging into the debate. For what it's worth, I side with critics who think the three options aren't actual exhaustive: I don't see a reason to believe that even very advanced civilizations will manage to easily simulate consciousness.