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The term "2 bits" has an interesting history beyond its technical use. Historically, "bit" comes from the word "binary digit," but in the context of currency, "2 bits" was a colloquial term used to describe a quarter of a dollar, or 25 cents. This usage dates back to the Spanish colonial period in the Americas when Spanish coins, known as "pieces of eight," were commonly used. One of these coins was worth 8 reales, and thus a "bit" referred to one-eighth of a dollar. Consequently, "2 bits" equaled one-quarter of a dollar.

Interestingly, in digital computing, "2 bits" is also exactly 1/4 of a byte, since a byte consists of 8 bits. This parallel between historical monetary terminology and modern digital data is a fascinating overlap, showing how a term can bridge the gap between past and present in surprising ways.