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The chip has an internal oscillator, but it is comparatively slow - achieving speeds only up to 12MHz on average (8-20MHz) - and less accurate than a crystal oscillator. With an external oscillator, it can go all the way to 80MHz. This is important because of how a computer works. You see, a computer operates only as fast as the clock it is attached to. The faster the clock, the more code the computer can process in a second. We want the computer to run as fast as possible so that we can do more stuff with it!
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