What type of bit is this and what is it used for?
It’s an engraving bit. For…well… engraving stuff.
Same idea as what you might call a V-bit
Is it a better choice for small letters than inventables 60 degree bit?
Yes.
30degree, 1/8” shank. Gets more detail but slower carve times
1/8" 30 degree engraving bit, pyramid or angle bit, also can be entered as a v-bit. Yes, it will give you finer details than the 60 degree, but the carve time is slower. It’s a cheap bit and creates a bunch of frizzies sometimes, but it does a decent job and I use it a lot. 150 grit sandpaper cleans things up pretty quickly.
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Thanks JordanLee1.