If we can write to it, and read from it, and it can be in at least 2 states, it can be thought of as a bit. If we can consistently and reliable represent it in more states we can use it to represent multiple bits.
With current technology we can reliably (though not easily or cheaply) manipulate things on the atomic scale in such a way that we could read and write data that way. Getting below the atomic scale might be tough as you start to run into quantum effects, but in theory if we could set and read the states of quarks and leptons that would be even tinier storage.
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