Exslpain ? What you mean .
If you have a binary counter the right hand position is either 0 or 1, 0 for off and 1 for on.
The next position the 2nd from the right goes on when the first position goes off. This position is the 2 position it stands for 2 when it is on, 0 when it is off
Counting serially is accomplished by having each position turn on if it is off and turn on if it is on when it receives an impulse. When it turns off it sends an impulse to the next position.
assume a 3 position counter.
000 = 0 a pulse turns the 1 position on.
001 = 1 a pulse turns the 1 position off which turns the 2 position on.
010 = 2 a pulse turns the 1 position on.
011 = 3 a pulse turns the 1 position off which turns the 2 position off which turns the 4 position on
100 = 4 and so on up to 7.
So you can see he actually said ....There are 10(TWO) kinds of people in the world: those who understand binary and those who do not.)
I said, I am 01(one) who does.
There is a little more to it, but maybe you get the idea.
:)Easy Does It:)