DAC diminishing returns

With any luck the new Dac may push the rest of the system to it’s limits. Then you realize how much really like the upgrade. but soon ya just want more. Then you upgrade, buy a sub, cables then upgrade xyz. So you tell me.

Does the significantly higher cost justify what might be a marginal increase in sound quality? Is buying a more expensive DAC for better sound just splitting hairs, and making you feel better about your system? Are different DACs just different coloration of the sound?

Only you can say. How far do you want to go? Keep in mind that its about the music, not the equipment and you’ll be alright. When you get to your destination, you buy less and less and enjoy

Thank you for all this great advice.  Seems that the consensus is buy a better DAC.  In this price range, more money better sound.  For the record I stream with an Ethernet connection to a raspberry pie 3 with a digihat and a Toslink connection to my bifrost.  Volumio software.
I can afford much more, put sometimes I’m to frugal.

Your music sourse starts at your dac after D&A  conversion 

I have owned many for example from Denafrips aries2 great dac for under $1k 

R2R dacs or Multibit are the original way or doing this and digital has come along way in every respect ,for example from the $1k Aries to pontus, to Terminator2 

peach one is a substantial step up in realism , soundstage ,depth,resolution and imaging , diminishing returns once you get up to over $6-$8 k 

to double that in cost very much lower Sonic return  my  brother has $18k and $34 k DCS dacs yes they are for sure better ,but not that much better maybe $10-15% better which is noticeable ,but  can easily live with say a Denafrips terminators2,plus version or Holo springs KTE may3 , that is the sweet spot ,

even in the $2k range respectable .

You are looking at this in the wrong way if you are thinking that price makes the difference.  It is how something is designed and built.  We manufacture an R2R 101D tubes DHT DAC with a separate 30lb power supply.  Not all R2R DACs sound like ours does.  Diminishing returns depends on what sound you are looking for.  Clarity, resolution, slam, dynamics, soundstage, separation of vocals and instruments, bass definition, musical, and tone of instruments such as piano, stand up bass, violins, etc.  Until you hear this for yourself, you won't know it.

I just heard our DAC on the new second from the top model of Wilson speakers.  I knew what our DAC sounded like but it was still a new experience to hear our product in a completely different system. We are always learning what makes music sound the way it does.

Happy Listening.

For the record I stream with an Ethernet connection to a raspberry pie 3 with a digihat and a Toslink connection to my bifrost.

This HAT and toslink are a weak link. You’ll get much better quality output from Pi through RCA coax (or better with BNC if DAC has it) from a different HAT like this

https://allo.com/sparky/digione.html

Another option is HiFiBerry DIGI2 Pro