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"Bit" is the smallest unit of resolution assigned to data in the digital realm. A bit will be interpreted as either a logic "1" or "0". So in effect, one could say "yes" to its being related to memory.

But more specifically, it is the contents stored in or moved through the memory or system. "Bit" refers to the information, data word size, capacity or speed, when describing computer hardware and software.

A "32 bit" CPU (processor) describes the "width" of its data-word that is processed with each instruction, as complemented by its operating system.

Another usage of the term is applied to indicate the speed of data transfer between components or over a network, which might be expressed in "gb/s" (or "gigabytes per second").

The units describing massive amounts of data capacity grow from "bit" to "bytes" (x8 bits or the basic memory word-size), to "kilobytes", (x1000) to "megabytes", (x million) to the more-typical "gigabytes" - or even up to the current cap of "terabytes". The terms are usually shortened to their obvious 2-letter abbreviations.

So in summary, The term "bit" is generally used to describe the width of the information highway, whereas references to large numbers tend to indicate capacity or speeds of its transfer.

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