Dynamic range extends *downwards* with digital audio. The loudest peaks are exactly the same at 8 bits as they are at 16 or 24 bits. The difference in sound between bit rates is how far down into the quietest range each one is able to reproduce cleanly. The noise floor of 8 bit is -48dB, the noise floor of 16 bit is -96dB, and the noise floor of 24 bit is -144dB. Most music has a dynamic range of under 50dB, so 8 bits is just barely able to contain it, 16 bit provides enough headroom for critical listening, and 24 bit provides enough headroom for large corrections being made in a sound mix. In order to use all the bits in a 16 bit recordings, you would have to raise -96dB up over the noise floor of your listening room. A very quiet library has a noise floor of 30dB. So that means that in order to hear -96dB, you would have to raise the volume 30dB, which would make the peaks top off at 126dB. That is the threshold of pain. No one needs more than that.