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

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.

Thank you, janehamble and auxinput. 

I think I’ll go down the usb -> spdif converter path.

Thanks!

I was digging around the internet for more information about reasons for converting from USB to SPDIF/coax, and I came across this article on John Darko's site titled " When should you use a USB to S/PDIF converter? "
https://darko.audio/2013/07/when-should-you-use-an-external-usb-spdif-converter/What made it relevant to this conversation is that it was written towards the end of 2013 where he states " I’ve said it before: if 2011/12 was the year where the digital audiophile in the street woke up to fixing jitter with better data clocking, 2013/14 will be the year he wakes up to the quality of USB power". The Hegel H80 came out in 2014 so in the window of time where it seems USB quality in DACs is questionable.Couple questions still remain for me specific to the Hegel H80..Is there a low cost DAC sub $400, such as a Pro-Ject Pre Box S2 Digital with MQA, Schiit Bifrost, or SMSL SU-8  balanced DAC, or any other relatively modern low cost DAC, along with a USB to Coax converter provide a higher quality(highly subjective) discernible audio representation on this integrated better than  the onboard DAC?  I'd love to hear someone with direct experience on this integrated say something like "Even the low end xyz DAC from Company N at  $xx.yy is better than H80's onboard DAC - more holographic, better seperation, better dynamic, etc."

As an update on my system: I ended up buying the Ifi iOne, a premium after-market USB cable (used Audio Sensibilities), and a decent quality isolating surge suppressor.  

I think it sounds better than when I was going from the computer straight into the H80's USB input.  I'm not an experienced audiophile, but I think there's more detail, rounder/warmer sound, and it's more engaging.  But objectively, I've also taken three improvements in a single step, so it's tough to say what exactly caused which improvements.  

I have not done an A/B comparison (no time)...so some of the improvement may be psychological..although I don't think all of it can be.  

I'm guessing the iOne is providing the biggest benefit, followed by the USB cable, and then the surge suppressor (if it all).

I am happy enough with the sound to move forward with my next two planned upgrades: a much better SPDIF cable (right now, I'm using an old cable that probably cost $20...?) and I'm going to make a power cable.

Hopefully, I'll recognize some gains with those two things.  But I'm also guessing that I'm nearing the point of diminishing returns.

For reference, I chose the Ifi iOne over the Schiit Eitr, because the iOne seemed to be more versatile (e.g., it has Bluetooth capability) and it didn't require a separate power source.  Unfortunately, I couldn't find any comparison of those two units.  There are other options from other manufacturers, but I wanted something from a company that had a website and a unit that claimed to clean/isolate the signal, 

My rough calculations showed that I could have gone the path of improving the USB signal (probably using the Remedy Reclocker recommended by Darko), but then I would still be inputting an improved USB signal into an input that is apparently not as strong as the other digital inputs.  And I think this approach would have cost about the same as going with the Ifi iOne (if I bought a used Remedy Reclocker).

I did a bit of research into finding other external DACs. But I think that would have extended my budget even further, and I couldn't find enough information to confidently make a choice.  

Hope this helps --

Thanks for sharing... Its really helpful to know that you were able to get a discernible difference by going to an iFi iOne DAC. That at the least provides me with a reference point.In my research, I too came to the conclusion that it didn't make a lot sense to just go to a Schiit Eitr since there are many higher quality USB to SPDIF converters that also do I2S which may come in handy in the future when/if I graduate to higher quality DACs.  Second, many DACs such as the iOne, iDSD, etc, provide both a low cost DAC as well as SPDIF out to bypass the USB completely. Lastly, I've also been looking at used Bluesound Node2 and Auralic Aries for both USB isolation via network but also ability to have my Hegel H80 be separated from my laptop.  Those both have good reviews and they too have both SPDIF out as well as have a built in DAC that seem to be better than the H80's internal DAC.