Performance
8-bit resolution, as found in older computers and audio samplers offers up to a 48dB dynamic range under perfect recording and reproduction conditions (roughly equivalent to standard-grade audio cassette tape, but with more obvious quantization errors at low volumes unless a deliberate 1-bit background noise "dither" is introduced, which provides a greater perceived dynamic range despite the noise floor being at approx -45dB), and 16-bit, as used in CD and modern equipment, can provide up to 96dB of dynamics (again, a deliberate noise floor may be introduced to soften perceived quantization error; however in this case, the floor is still below -90dB, which is quiet enough to become lost in circuit distortion in cheap players, or environmental background noise in all but the quietest rooms with the loudest playback volume). The 12- and 14-bit DV/NICAM standards (-72 and -84dB respectively) were thought to be perfectly adequate for televisual and video camera applications at the time of their inception, particularly compared to VHS and Hi-8.
Audiophile-spec recording resolutions extend this to a theoretical -120dB (20-bit) or -144dB (24-bit), the latter of which exceeds the dynamic range between complete silence (signal energy below that which can be detected by the human ear) and noise of high enough intensity to cause almost immediate ear injuries, with an ideal 24-bit DAC and associated amplifier being able to accurately output signal values from 0, 1, 2 through 16777213, 16777214, 16777215.
Read more about this topic: Audio Bit Depth
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