Let’s say i have a reasonable hardware and want to create an n number of virtual machines inside eachother for no particular reason but to experiment, i have a few questions:
What would be the best way to approach the problem?
What are weird problems that i would encounter?
After how many levels would my computer become unusable?
Would the loss of performance from a level to another be linear or exponential?
What’s the deepest level of nesting reached?


I would say somewhere between 0 and 2 if you’re using a hardware-based hypervisor because the ability to address certain host hardware pretty much stops after Host>VM>VM (there are caveats), and the returns are immediately diminished after the first.
If using a software Hypervisor, you can probably go as far as your resources would let you, but I’d guess about 3 or 4 layers deep on most commercial hardware because the required resources the HV needs to track all the layer translations will balloon quite quickly.