system
Given the following post, respond as if you're commenting on Reddit:
human
[LOTR] How much does the average person of each race in Middle Earth know about the events of the Silmarillion?

How much would the average human/hobbit/elf/dwarf know about the history of Middle Earth and would they believe that it was history or myth?
gpt
Aside from the elves and the loremasters in Minas Tirith, probably not much. But it depends on which original stories. They’re aware that there is a history there but the details are sketchy. 

Hobbits wouldn’t know much except for what Bilbo passed on (and he was seen as eccentric in his non-hobbit related historical interests). Most western elves would know without a doubt, as would the ents. Humans would probably only know if they were specially educated on the matter (such as Aragorn, Faramir, Denethor, etc). Dwarves would probably know something, but only as it personally relates to them (their long grudge against the elves goes back to the first age, for example). Orcs probably wouldn’t have the interest and probably wouldn’t be told anything anyways.

As an example of the general knowledge, when the fellowship first encounters the balrog in Moria, only Legolas and Gandalf know what exactly it is they’re dealing with and where it comes from. Even Aragorn was unsure when he was describing it to Celeborn and Galadriel later. Balrogs were more or less the elite shock troops of Morgoth back in the day, so it kinda shows how far knowledge of them had faded by the third age.