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Two-bit is from early american times when money was sperated in "bits" equal to about 12.5 cents a piece, a common price for alot of items was two-bits, or 25 cents. Thus, an old-fashoined way of identifiyng someone as a 25-cent whore.
A guy walks in and sits down at a bar. The side of his face is bruised and bleeding so the bartender asks, "What in the world happened to you, buddy?".

The guy says, "Oh, I got in a fight with my girlfriend and I called her a two-bit whore." "Yeah?" asks the bartender. "What did she do?"

"She hit me with her bag of quarters!"
by Cody Stratton May 23, 2005
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