What do you use bits for?

Could you please elaborate on the practical applications of bits in the world of cryptocurrency and finance? Are they used solely for transactional purposes, or do they serve a broader range of functions within the ecosystem? How do they compare to other forms of digital currency, and what specific benefits do they offer to users? Understanding the versatility and value of bits is crucial for anyone navigating the complex landscape of digital assets, so I'd appreciate a detailed explanation of their purpose and usage.