Earlier quoted context omitted.
There's color space and there's color depth. You may be using D-P3 with 8 bit, which is worse (less accurate?) than sRGB with 8 bit. And there's bandwidth. Your monitor may not be able to handle 4k 240fps 16 bit.
These days cheaper monitors with only 8bpc support advertising higher color support use FRC to flicker between different 8-bit colors at a high enough rate to trick the vision receptors to seeing a mix between the two. Separately, sorry to nitpick, but while wide gamut colors with only eight bits of data have lower resolution than sRGB, that doesn’t make them an inferior option. You might not be able to specify the e…
The problem is that you almost never are showing a single solid color and in the real world it matters much more how wrong your colors are compared to the ones displayed next to than it does how wrong they are compared to some far away reference. Banding is VERY noticeable and would be even more so if camera sensors didn't have noise.