Most of the time I shoot RAW, so it doesn't matter.
Raw image files have no color space, so the camera color space settings have no effect on a Raw file.
When I shoot JPEG or TIFF I make sure the camera is set to Adobe RGB, because Adobe RGB has a wider color gamut than sRGB.
sRGB and Adobe RGB are color spaces. What you need be concerned with is the gamut of colors each can represent.
Which color space you use depends on the gamut display capabilities of the device(s) used to view the image.
The most common TN computer displays can only display a portion of the sRGB color space, and even less of the Adobe RGB color space.
$1000+ wide-gamut ISP displays can usually display all of the sRGB color space and 95% or more of the Adobe RGB color space.
Color depth refers to how many bits (binary digits) define the colors.
8-bits can define a color depth of 256 colors per color channel. The binary number - 11111111= 255 and defines 256 levels of tone: 0 - 255. (0 = pure black, 255 = pure white)
12-bits can define a color depth of 4096 colors per color channel 111111111111 = 4095 and defines 4095 levels of tone: 0 - 4095. (0 = pure black, 4096 = pure white)
14-bits can define a color depth of 16,384 colors per color channel. 11111111111111 = 16,384 and defines 16384 levels of tone: 0 - 16,383. (0 = pure black, 16,383 = pure white)
Both sRGB and Adobe RGB can be represented by color depths of 8-bits, 12-bits, or 14 bits.
The more bits used, the more subtle the gradations of tone either color space can show.
JPEG is limited to an 8-bit color depth but a JPEG can be either sRGB, Adobe RGB or any of the other RGB color spaces.
Editing experts recommend editing in the broadest color gamut available to you, which is usually ProPhoto RGB.
Set the output color space and embed the color profile that is appropriate for the photos use.
For some commercial uses the additive RGB color model, and it's many color spaces, is not appropriate.
Instead the subtractive CMYK color model is used.
Note: CMYK is not a color space, it is a color model and has no color spaces.
RGB color model - Wikipedia, the free encyclopedia
CMYK color model - Wikipedia, the free encyclopedia
CcMmYK color model - Wikipedia, the free encyclopedia
If you're not faint of heart or math-challenged the definitive 'color science bible' (which by the way has no (none) color illustrations in it) is:
Color Science: Concepts and Methods, Quantitative Data and Formulae.
For a less technical treatise on color management I recommend -
The Digital Print: Preparing Images in Lightroom and Photoshop for Printing