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Might our waking consciousness be of a similar nature to our dreams, and thus hallucinations rather than actually real?[/b]
I don't think they are of the same nature, literally. What you see here is not literally a hallucination. This world is generally solid and stable, moreso than a dream. However, I do believe some -aspects- of waking life can be considered an hallucination/illusion, symbolically speaking. Like when you get extremely attached and focused on material weath, but thats another story :)