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Loose teflon tubing vs factory applied teflon- which is better?

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Air, is, of course the best dielectric.  Thus the theory of loose teflon being better would make sense.  In a perfect world, the teflon would never, ever touch the wire.  But since this is not the case, a loose teflon tube instead "leans" against the wire.  As signal travels down the wire, any microscopic vibrations of the wire can cause a sort of rattling of the metal against the teflon.  This is essentially how microphones work.  Send that vibration to an amplifier and all of a sudden you have magnified a noise that was never meant to be part of the music reproduction.  So we instead have the teflon directly factory applied to a very specific thickness (12 mils).  

If, in fact, you want the cleanest signal- cotton is the best alternative.  It surrounds the wire with air, without being a hard surface to cause additional noise.  This is the dielectric in our DNA Interconnect, which is the best we have designed.

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