a bit is 1/8 of a byte in computer parlance or octet in networking parlance.
you basically have it down pat. it's binary - on or off, 1 or 0, high or low. for TTL, 5V or 0v (ground). you get the idea.
a bit is represented as lower case b and a byte is represented as upper case B. so in networking if you are looking at Mbps, that's Mega (SI) (1e6=1000^2=1e3^2) bits per second. also shown as Mb/s.
however... Megabytes today is shown in microsoft OS's and browsers as IEC units (2^20=2^10^2=1048576=1024^2) which is MebiBytes or MiB. so a browser unfortunately shows MB/s when it really means MiB/s or KB/s when it really means KiB/s.
with computer measurements, things are going more and more towards IEC units which are powers of 1024=2^10.
16GB memory card means 16*2^30*8 bits. but mind you, flash memory blocks in a memory card can be written up to about 3000-10000 times (Program/Erase cycles) depending on spec/design.
so their maximum amount of writes for the device is 16GiB * 2^30B/1GiB * 3000PEcycles
in a physical form, a bit is simply the binary state of something. it can be the state of a transmission line to/from a logic gate or of the output or input of a gate. for this you have to get into digital electronics. it can be the state of a parallel I/O line on an arduino board or PIC chip. it can be the state of a serial port data channel, such as found with SATA or USB, firewire, thunderbolt, etc.
it can be RF transmission state for WIFI or zigbee or cell signals or DECT 6.0. those send transmission signals and encode and modulate them in such a way (such as QAM) in order to be able to transmit and receive bits over the air wirelessly.
MLC flash memory has 3 states. TLC has 4 I think (or was it 8?), and SLC has 2 states for each cell (I suppose you could call it a bit because that's what it ends up being, actually in MLC's case it ends up being 2 bits since 2^2=4 or 2nd root of 4 is 2).
I would have to look up MLC and TLC's number of states to be sure, since that's not of great importance to my work.
I could go on and on....