Where did the term "Two Bits" originate, and is two bits a quarter?

Question

I've heard this term all my life; and from many sources, I surmised that two bits were 25 cents-how is this so?

Answer 1

I think they may be dimes, but maybe I'm wrong

Answer 2

The peso had a nominal value of eight reales ("royals"). The coins were often physically cut into eight "bits", or sometimes four quarters, to make smaller change. This is the origin of the colloquial name "pieces of eight" for the coin, and of "quarter" and "two bits" for twenty-five cents in the United States.

Answer 3

Well the answer is right here: http://www.bellaonline.com/articles/art40672.asp
Its kind of a long story, but kind of interesting. I was wondering the same thing, so now I knw, and if you go to that website you will knw too.
Smile.

Answer 4

Here's my two cents.