I was reading the Wikipedia page on counting in binary and came across this statement that I don't quite understand:
In the binary system, each digit represents an increasing power of 2, with the rightmost digit representing 2$^0$, the next representing 2$^1$, then 2$^2$, and so on.
So does this mean that as we increase the number of digits, we increase in powers of 2? 2$^0$ is represented by 0001, 2$^1$ by 0010, 2$^2$ by 0100, and 2$^3$ by 1000?
I know with the decimal system, 10$^2$ gives me 100 available numbers. In binary, 2$^2$ (which equals 4) gives me this: 0, 1, 10, 11 (4 available numbers). But 2$^3$ (which equals 8) gives me this: 0, 1, 10, 11, 100, 101, 111 which is only 7 numbers. I'm not sure what I'm missing, in the decimal system we keep track of orders of magnitude with 10$^n$, but in binary is it 2$^n$-1?