spdif/USB converter vs DAC upgrade


Right now I am not really using any computer based audio source. I do have my old laptop connected to my integrated amp using the headphones output. My laptop does not have a SP/dif output. This setup is only used during parties when people want to play you-tube/spotify stuff. However I am thinking about buying a NAS and use DBpoweramp to rip my CD collection. But then to get a half decent sound I need to use the USB output of the laptop. That means that I have more or less 2 options.
1) I buy a USB to SP/diff converter like Stello U3/SOTM dx-USB etc and maybe buy something like the ifi usb power. Then connect it to my Wadia 12.
2) Buy a new DAC something like the Schiit Gungnir/Metrum Octave mkII with a USB input.

Both options have their pros and cons. In the far future I might need to upgrade my DAC anyway for high ress audio. But for ripped CDs 16/44.1 is good enough. I am looking for something that is at least as good as my CEC TL51x Wadia 12 combo.

But maybe a cheaper solution like a Schitt Bitforst or the M2tech USB evo will be good enough. It would be great if the future streaming would sound a lot better when compared with my CEC transport. But I am not willing to spend lots of money to gain a slight improvement.
mordante
An outboard converter like the Stello is a huge improvement over built in units. I have the Stello and have used it with DACS from $500 to $3k ( metrum hex currently).

Although it might be worth trying the Metrum Octave usb input before investing further.
The Audiobyte Hydra-X (384 KHz PCM/5.6 Mhz DSD) is a state of the art converter, but pretty expensive
"Why not just get a I2S output card for a PC and then use a DAC with I2S input."

Because the jitter from ALL PCI cards is terrible. It's the master clock that you must optimize. This is analogous to the Cartridge in a vinyl system. This is the key part to get a good result.

Its not just that the Off-Ramp has I2S output. Its the low-jitter clocks. That is why it beats PCI cards.

Steve N.
Empirical Audio
If you are using PCs, I think Steve's OffRamp converters are the way to go.

If you are using Macs and want to use Audirvana Plus, I'd recommend a USB-SPDIF that supports Direct/Integer modes such as the Wavelength Wavelink HS.

Like Steve says, USB-SPDIF devices vary in implementations and sound quality.

If your software doesn't support Direct/Integer modes, Steve's OffRamp is a much better sounding solution (tho at a higher price).

That said, I read elsewhere that Steve's next OffRamp would include a Direct/Integer mode compatible interface as well.