Ben,
Unfortunately there is no simple answer. A well designed single bit DAC can be low cost and can be exceptionally good when implemented properly.
A single bit DAC is elegant, very linear, low cost but has the disadvantage of high out of band noise that must be heavily filtered. (Out of band noise is not a problem but heavy filtering or cheaply implemented heavy filtering may affect some of what is in the upper range audibly)
For the above reasons, pro audio and high end favours multi-bit DAC's which are more complex, expensive and have more potential for linearity problems (matching between individual DAC elements). These do have the considerable advantage of making an output that is much closer to an analog signal and therefore much easier to filter, however, they place more constraints on the power supply etc.
If you buy reputable gear then I would not get too hung up on the DAC methodology - the manufacturer will have made trade offs between the chip and the architecture of the entire design including power supply etc.
IMHO, both can produce excellent sound reproduction with hundreds of times less distortion than your speakers.
If you want top quality then you probably want to get a component with multibit delta-sigma and dynamic element matching architecture.
If you want the best but are not sure about how much to spend on this particular component. Then consider avoiding a $5000 purchase on pro audio quality CD / DAC player if you have only $1000 speakers....it simpy does not give you the best sound quality return on your investment... upgrade the speakers first. If you already own $20K speakers installed in a specially treated room, like most studios, then definitely consider the highest end DACS.
...my two cents
Unfortunately there is no simple answer. A well designed single bit DAC can be low cost and can be exceptionally good when implemented properly.
A single bit DAC is elegant, very linear, low cost but has the disadvantage of high out of band noise that must be heavily filtered. (Out of band noise is not a problem but heavy filtering or cheaply implemented heavy filtering may affect some of what is in the upper range audibly)
For the above reasons, pro audio and high end favours multi-bit DAC's which are more complex, expensive and have more potential for linearity problems (matching between individual DAC elements). These do have the considerable advantage of making an output that is much closer to an analog signal and therefore much easier to filter, however, they place more constraints on the power supply etc.
If you buy reputable gear then I would not get too hung up on the DAC methodology - the manufacturer will have made trade offs between the chip and the architecture of the entire design including power supply etc.
IMHO, both can produce excellent sound reproduction with hundreds of times less distortion than your speakers.
If you want top quality then you probably want to get a component with multibit delta-sigma and dynamic element matching architecture.
If you want the best but are not sure about how much to spend on this particular component. Then consider avoiding a $5000 purchase on pro audio quality CD / DAC player if you have only $1000 speakers....it simpy does not give you the best sound quality return on your investment... upgrade the speakers first. If you already own $20K speakers installed in a specially treated room, like most studios, then definitely consider the highest end DACS.
...my two cents