Hegel internal Dac - USB or Coax or ditch the DAC altogether? Exploration on a budget!


I have a Hegel H80 and currently using the internal DAC for my digital music using the usb directly from my lenovo laptop. I'm wanting to take the music to the next level of quality improvement without breaking the bank.  This integrated cost me $600 and while I know the sky is the limit on DACs and tweeks, I wish to take a step that will be significant while keeping me sane in terms of spending. Here are some questions that are coming up and wondering if you can share your insights:
1) Would I experience a significant difference by adding a USB reclocking, isolating, etc. such as an ifiiUSB or ipurifier, etc. to get a boost in quality?.....  Or......
2) Is the SPDIF implementation higher in quality than USB, so getting a USB to SPDIF converter a better bang for the buck vs trying to clean up the USB?......Or......3) Is there a DAC, even used at a cost of $600 or less, that will surpass the internal DAC?
Would love to hear your experience even if you have other models of Hegel integrated, as long as you can suggest solutions that fall in the price category I mentioned. Thanks.

Thanks you so much!!
hrabieh
Great post!  I’m exactly in the same boat. H80 and relying on internal DAC and connected via USB from my ThinkPad. 

Based on my limited research, I’m not sure we can find a DAC that’s going to be that much better than using the Hegel.  I might be wrong though, as there are tons of reasonable and highly reviewed DACs now...

My source is Apple Music so even if the coaxial can accept higher resolution files, I’m not sure I can benefit from that. I signed up for a Tidal trial but haven’t used t yet...

So I’ve been trying to figure out whether to:
1. Upgrade my usb cable and forgot about further tweaking;
2. Go with one or more USB regeneration/purification products; or
3. Go with a USB->SPDIF converter. 

All options would still need upgraded cables, and that means cost for the cable and the regeneration or conversion devices.

I hope soemone with more more knowledge and experience responds to help us both! 




I found the Schiit Eitr USB/SPDIF converter to be an amazing value and much better than USB tweaks.  I'd go there.
I would probably vote for a USB-to-SPDIF converter.  If you just get a USB/USB reclocker (which is great), you are still relying on two USB receivers (one in the reclocker and second in the target DAC).  The USB receiver in the DAC still needs to convert to S/PDIF and finally to i2s before sending data to the DAC chip.