Peter uses the analogy of a building to explain that a believer is to live in community with other believers. Christ is the cornerstone and believers are living stones that are part of the spiritual house God is building. God says the cornerstone (Christ) is choice and precious: some choose to believe in Him, leading to salvation; for others Christ is a stumbling block and rejecting Him leads to destruction. God wants us to willingly play our part in the spiritual community he is building rather than live autonomous individualistic lives.
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