It literally just means that something consists of two things (aspects, variants, etc.)
It can mean a lot of things, depending on context – and it can be misleading in situations where there isn’t really “only” two possibility.
For example, we can talk about a “dualistic” world view, where everything is divided into two options: good and evil, us and them, left and right, man and woman, republicans and democrats, etc. you get the gist.
This becomes misleading, when there would be more than just these – not everybody who is not “left” is “right”, not everybody who is now a republican is a democrat, not everybody who you don’t consider “good” is actually “evil”, etc.
There are many other meanings of the term, but they all depend on the context.
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