Steven writes:
Almost ten years ago I wrote an entry about the “1 bit = 6 dB” rule of thumb. This rule states that for each bit you add to a signal, you add 6 dB of signal to noise ratio.
The first derivation I gave then was focused on the noise, where the noise maximal amplitude was proportional to the amplitude represented by the last bit of the (encoded) signal. Let’s now derive it from the most significant bit of the signal to its least significant.
More details at Harder, Better, Faster, Stronger blog.