Why don't virtual magnets produce "real" magnetism? What is magnetism?
I would argue that magnets don't produce magnetism either, real or otherwise. I think magnetism is a phenomena that can theoretically be created with objects that are not magnets, but behave like magnets in the proper medium.
Therefore, if all the necessary values could be recreated in a simulation, then yes, "magnetism" could be simulated. It would even be real magnetism in the sense that the phenomena would be recreated, but it would not be "real" in the sense that physical magnets could interact with virtual magnets.
The bottom line is that "magnetism" and just about any other physical process/phenomenon may be substrate independent.
You say we cannot determine if consciousness can be simulated until we determine what it is. I agree. However, IMHO there seems to be a consensus that whatever consciousness is, it is not a physical substance.
That leaves us with some options, two of which are:
(1) Consciousness is a nonphysical, supernatural substance,
(2) Consciousness is information embodied by physical, organic systems (organisms).
It may be that consciousness is indeed information embodied by organisms, but it may be that such systems cannot be reduced to a set of algorithms that can run on a static CPU.
