This would mean that the platform's costs for watching at the second highest resolution (e.g. 1440p for 2160p video) would be the highest.
You aren't given the option to scale above the upload resolution, nor would it matter because your computer scales the video to whatever resolution you want anyway.
But if the user watches at the second highest resolution, conversion must take place while bandwidth costs still are high. At the highest resolution, no conversion at all must take place.
That's true, but it's the cost of providing that resolution. Most videos are 1080 max, and usually less.
In any case, retaining each resolution to be served saves CPU power while expanding storage requirements exponentially.
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