YES! Exactly! The bit depth has to do with noise floor, nothing else really.
Yep. (Usable) dynamics is the difference between noise-floor and clipping. Brave new world! 
Home Recording with Kemper - Setting Gain Structure
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mikegrahamguitar -
November 28, 2016 at 3:32 PM -
Thread is marked as Resolved.
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Of course - if you use equipment which is in itself noisy (including the analogue stages before AD conversion and/or after DA conversion), then a higher recording level is of course beneficial in regards to signal-to-noise ratio. That's a whole different matter. I don't think this kind of noise is usually a problem - but some cheap interfaces etc. may suffer from it still
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if you use equipment which is in itself noisy
Each and every piece of electronic equipment is noisy. In other words: its has limited dynamics. And each and every analog piece of equipment is in addition band width limited, meaning it does not have unlimited resolution. That is why we can pick a sample frequency and a bit depth to perfecly sample any analog signal without loss.
I don't think this kind of noise is usually a problem - but some cheap interfaces etc. may suffer from it still
Its not the problem, but the solution.
Its all about the dynamics of the signal we want to digitize. Any currently known analog piece of equipment (amplifier, mixing desk, pre-amp, guitar-amp, mic-amp, analog synth) has less dynamics than 24 bit. High gain guitar amps might well have only 10 bit of dynamics (or about 60dB).