Bits and Bytes

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The easiest way to understand bits is to compare them to something you know: digits. A digit is a single place that can hold numerical values between 0 and 9. Digits are normally combined together in groups to create larger numbers. For example, 6,357 has four digits. It is understood that in the number 6,357, the 7 is filling the "1s place," while the 5 is filling the 10s place, the 3 is filling the 100s place and the 6 is filling the 1,000s place. So you could express things this way if you wanted to be explicit

The Base-2 System and the 8-bit Byte

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The reason computers use the base-2 system is because it makes it a lot easier to implement them with current electronic technology. You could wire up and build computers that operate in base-10, but they would be fiendishly expensive right now. On the other hand, base-2 computers are relatively cheap.