I haven't heard this in a long time, people staying something costs two, four, six, or 8 bits.

[texanwitch]

Older people would use this term when I was little kid.

I have never used it, but I know what it means.

I have some Kenndy 4 bit pieces sitting on the table I was looking at.

[Denninmi]

1. Today people know bits more in the computer senses.

Bits, bytes, mega, giga, terra.

I'm almost fifty, and I never heard of the monetary term except in connection with old literature or lyrics such as "shave and a haircut 2 bits".

I honestly don't know what it was -- was it a 12 1/2 cent piece (1/8th of dollar, half of quarter) or something?

[texanwitch]

3. It means 25 cents, 50cents, 75 cents, or a whole dollar.

I think the usage was used until the 60's or so and then died out.

Maybe it was a more country term.

[byeya]

2. I am pretty old and I used the term when I was little and older

people used it a lot.
You can't buy much for a quarter or 50 cents anymore so the 2 bits and 4 bits wouldn't come up too much.

[texanwitch]

4. Eight bits won't get you much either.

I put eight bits into a Coke machine yesterday and the machine give me back the coke and the eight bits.

[byeya]

5. It wasn't just a country term because I grew up in Baltimore near the harbor

and it was in common usage.
I think you are correct: It died out in the 60s.

[HopeHoops]

6. The term originated from the practice of cutting coins into fractions.

Of course, that was when coins were actually made of valuable metals. For smaller denominations, they'd slice the coins and hence the word "bits" - not to be confused with "naughty bits" mind you. Those are an entirely different thing. Four bits is two many - I only have two hands.

[Scuba]

7. Two bits, four bits, six bits, a buck. C'mon cheerleaders, give us a cheer!