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> it only has two colors (black/white, 1/0)

As the article mentions, the source video is grayscale, not monochrome. Grays are used for motion blur, glow, gradients, etc.

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True, I think it's more accurate to say that the video can be shown in only black & white while still remaining mostly true to the original content, which isn't the case for most videos. So you can play bad apple on two-color display and still easily be able to recognize it as bad apple, which definitely contributes to its "hello world for video" status.

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