How easily can you distinguish between different DACs?

DACs do two things.  1) They decode a PCM or DSD digital stream and convert it to analog.  2) They amplify that analog signal to a level that feeds into a preamp or to a level that can feed directly into an amp.

The digital side decoding process can take many paths such as R2R ladder D/A or various D/A chips produced by various manufacturers.  Some listeners can tell the D/A chip in use by their sound.  The quality of the power supplies and noise rejection plays a role in producing these delicate voltages that are the musical signal.  And on the analog side, the design can take many paths such as tube, solid state, op amps, ICs or discrete components.  All of these considerations have an impact on the sound quality.

To say all DACs sound the same would be to say all preamps and amps sound the same.  Then we could say all speakers sound the same- and so on.  And beyond that we could argue that musicians do not need to spend thousands of dollars on their musical instruments because a $500 guitar or sax will sound just as good.

When you stop hearing a difference, stop spending money and enjoy the music.

“When you stop hearing a difference, stop spending money and enjoy the music.”
+1, @tonywinga 

Good points by all. Some musicians want top notch instruments, others will perform on whatever is available and adjust their style. If any piece of equipment does something you really like, and you can manage the cost, then get it!

James Booker made some recordings at Paramount that have now become an album called The Lost Paramount Tapes. Apparently they had a bunch of great pianos for him to choose from, and he chose a little spinet that was just a set piece. In the eyes of the producers this amounted to James ruining the entire session. When I listen to those tapes it’s obvious to me that James knew what he was doing. There’s nothing inferior about a spinet. It’s just knowing what to do with it.

One of my favorite memories was a PBS concert back in the 1980s.  The concert featured a famous flautist who was interviewed by the PBS announcer after the show.  The interviewer handed this flautist a cheap plastic recorder and asked him if he could play a tune on it.  He made incredible music with that toy.  I was amazed.  It’s true:  95% talent and 5% instrument.

From my experiences it was easy to hear differences between under $500 DAC and $1k or higher. And the differences manifested themselves in the detail of the playback. BUT this was not the case with the grouping of $2k to $10k DACs. The only thing I was able to hear with this wide range of gear was a quieter blacks / lower noise Floor.