Bits is a universal currency to transmit information. As long as we can encode Source-Channel Separation Theorem “Are we loosing information by using Bits? No.” Statement: If a source can be transmitted over a channel at a certain resolution, then it can be transmitted using a binary interface between the source and channel at the same resolution. Meaning: If a communication channel has a certain fidelity for arbitrary data, encoding the data by bits will not change the fidelity of the channel.