After telling me I was wrong and that all numbers can be represented in 8 bits, he then went to a colleague and they both started talking crap about how I was wrong and I don't know anything apparently.
O well guess I don't...
You're all wrong!
All numbers can be represented by 12 characters (0-9, +/- and a decimal point).
4 bits is enough for 16 numbers, so it's enough for those 12 characters and 4 spares.
Therefore all numbers can be represented in 4 bits and using 8 is a waste.
It makes a lot more sense than their position.
If they somehow really don't understand that 256 numbers (or any number of digits in any base) is high enough to uniquely represent every single one of an infinitely large group, you're not going to be able to explain it to them.