100 bits actually is worth $1.00, so if a user buys 100 bits, Twitch makes 40 cents and the Twitch user gets $1.00’s worth in bits. The same is true for larger amounts. 500 bits are in fact $5.00 that a user can send to a streamer they like, but to buy 500 bits, a user has to pay Twitch $7.00.