To understand RxJava, think of a list. Today manipulating a list like transforming, splitting, merging can be done easily using functional methods (map, groupBy, etc). RxJava uses the same principles except that its main target is not list but stream. Stream is asynchronous, often live data such as websocket channel or online movie.
Event bus comes from the needs to decouple classes which in Android are often bound with life cycle. Tight coupling of network callback and Activity's Views as an instance, has been a cause of numerous null pointer exceptions. Event bus with its publisher-subscriber pattern alleviates this issue.
How does it get mixed with RxJava ?
To begin RxJava incorporates Observable pattern. Here an Observer watches an Observable and reacts when an event arrives. Observable has several sub-classes, among which is Subject that has the properties of both Observable and Observer. Since it works by trapping an event and publishing it to subscribers, it technically functions as event bus.
Is it wise to use RxJava as event bus ? No. RxJava would introduce unnecessary complexities for simpler purposes. Only use it if the app does manipulate streams. For example pairing frames from a movie stream and subtitles from another stream. If the app simply consumes a REST API and needs to decouple the callback from activities/fragments then event bus is enough.
