Binary notation is a series of 1's and 0's, calculated by reading from the right to the left, doubling the decimal-value of each digit as you go to the left, as follows:

0 (binary) = 0 (decimal)
1 (binary) = 1 (decimal)
10 (binary) = 2 (decimal)
11 (binary) = 3 (decimal)
100 (binary) = 4 (decimal)
...
and so on.

So, reading the initial statement as binary, it reads "there are only 2 kinds of people in this world, those who understand binary and those who don't."