Two bits is a term that refers to a quarter of a dollar, or 25 cents. The phrase originated in the 18th century when a bit represented an eighth of a dollar, so two bits would equal 25 cents or one quarter of a dollar.
The term is a relic from a time when the Spanish dollar, known as the piece of eight, was widely circulated in the Americas. The Spanish dollar was divided into eight pieces, or bits. Thus, two bits represented two of those pieces, totaling 25 cents.
Today, the term is less commonly used in everyday conversation, but you might still encounter it in some regional dialects or historical references. It’s always interesting to see how language and currency evolve over time!