, thank you for your answer.
My thoughts about your questions:
1) Could we make a simulation where the people in our simulation are self aware and have a life?
I think, it would be like a slow and gradual forgetting that we live in virtual reality, after we start using it. We will have a body and we will think that world around us is reality, although our real body with our brain will stay in this world.( in which we are living today) In this way we will have self aware and have a life into a new virtual reality. (I mean we will project our life from one reality to another, herewith our self aware remains the same)
2) And what would happen if a simulation was made, and then that simulation made a simulation.
I think, probably, it is the main point or the end of each stage of the evolutionary development of a each new civilization. I mean to creating a new reality into another. Yes it seems like a paradox but our philosophy has a several theme about cyclical of human being about the eternal return of all, which was considered a much time ago.
3)Would that crash the original simulation eventually?
I think, it would as overload or restart with memory erasing.