I bought a Node 2 primarily for streaming Tidal Masters. The internal DAC doing full MQA decode is very smooth and non-fatiguing, though less incisive than playing the first "unfolding" through my Bel Canto 3.7 via S/PDIF. As others have mentioned, it benefits from upgraded cables (I use Nordost Purple Flare AC and Red Dawn interconnects with a Blue Heaven S/PDIF cable). Finally, I found that using an iFi S/PDIF Power Purifier was quite beneficial at the input to the Bel Canto to clean up the feed from the Node 2. Having said all that, on ripped 16/44 files, my Bryston BDP-2 smokes the Node 2 as a streamer which it should at many times the price.
Experience with Bluesound Node 2 use with external DAC
I am very impressed with the Node 2. So far my use of the Node has been with it's built in DAC. It sounds great. Since I don't own an outboard DAC I have had no other choice but to use the Node's DAC. It is hard to fault it's DAC at any price much less the $500 price of the Node. That being said, I realize there are alternatives out there than can improve upon the built in DAC. I am at a point now where I am curious to hear what an external DAC may have to offer in terms of sound quality. For those of you who are running a Node through an external DAC, what would you recommend and what type of improvement have you experienced vs DAC in the Node.