Bits is the amount of colors there are. 8-bit has 256 colors, 1-bit is black and white, 4-bit has 16 colors, 16-bit has 4,096 colors, and 24-bit has 16.7 million colors, and 24-bit is also known as "True Color"
Thats what I thought. Though, what I said is true. People mention old Mario games as "8-bit" or "16-bit" because they were made with 256 or 4096 colors, not because the pixels were big and blocky. Hope you understand :))
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Hope I helped you for the future.
Hope you understand :))