This value is called the “native word size,” and it determines the maximum number size the processor can operate on in a single step.
A 32-bit computer *can* work with 64-bit (or even larger) numbers, but it has to split operations into multiple steps. For example, to add two 64-bit numbers it would need to take twice as many steps. In practical terms, this makes it slower when working with large numbers than a 64-bit computer.
This is an oversimplification, but it’s the gist of things.
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