The word “bit” long meant, in England, any coin of a low denomination. In early America, “bit” was used for some Spanish and Mexican coins that circulated and were worth one-eighth of a peso, or about 12 and one-half cents. Hence, two bits would have equaled about 25 cents.

Why do they call it two bits?

The origin of bit comes from the practice of cutting the Spanish dollar (peso) into eight radial pieces to make change. ... Thus, twenty-five cents was dubbed "two bits," as it was a quarter of a Spanish dollar. Because there was no one-bit coin, a dime (10c) was sometimes called a short bit and 15c a long bit.

What does my two bits mean?

One's opinion or point of view, for whatever it may be worth, generally when it is unasked for. ... He always insists on putting in his two bits whether we want his opinion or not! Here's my two bits: I think the staff would really appreciate a bump in their pay.