1 bit is a binary 1 or 0
8 bits is equal to 1 byte
If you have a 1 Mbps connection you should show a transfer around 1024 Kbps divided by 8 = 128 Kbps (KiloBytes). Of course under best possible circumstances, there is still room for error and the faster you connection the error rate could increase, more lost bits, collisions, runts, noise, and other factors. I also believe some of the bits are used for keeping syncronization of the digital signals timing, error correction, and ecapsulation of packets, so even dividing by 8 it will be off some but not a lot. This is the way I see it anyway. They are both units of measurement, simlar to 1000 meters = 1 kilometer except it is done by a factor of 8. The reason for the 8 is also is 8 bits is the max number allowed. 11111111 = 255 if you want to convert it. Ip address is 32-bit divided into 4 8-bit octets. 255 is the largest number possible from 8 bits.