A bit is a subdivision of a single Bitcoin. Each Bitcoin is made up of one million units, known as bits. Bits and Satoshis are both smaller denominations of Bitcoin; one Bitcoin (BTC) is equivalent to 1,000,000 bits or 100,000,000 Satoshis, so 1 bit equals 100 Satoshis.
As the price of Bitcoin escalates and the cryptocurrency heads towards mass adoption, using bits as a unit to measure and transact in BTC will become more popular and widespread. This is because it enables consumers to break down BTC and use it for real-world transactions to pay for goods and services.
While 1 BTC may be too expensive for making daily purchases, Bitcoin bits are smaller units of the cryptocurrency that can represent amounts more commonly transacted. Referring to BTC in bits is also convenient from the perspective of bookkeeping and accounting, as values in bits can be represented up to two decimal points.