The term 'BITS' is an acronym for Binary Digits, which are the basic units of information in computing and digital communications. They are the smallest possible unit of information, and can be either 0 or 1. BITS are used to represent data, instructions, and text in computers and other digital devices. They are also used to encode information in digital signals, such as those used in radio and television broadcasts. BITS are also used to store data on magnetic media, such as hard drives and floppy disks.