Final answer:
In computing, the smallest unit of space that holds a '0' or '1' value is a bit. It is the basic building block of digital information and can represent two states: 0 or 1.
Step-by-step explanation:
The smallest unit of space that holds a '0' or '1' value in computing is a bit. A bit is the basic building block of digital information and can represent two states: 0 or 1. It is the fundamental unit of information in computing systems.