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Sure, but with a system like this you still need to build for reusability of a rocket - if not then even a smaller rocket will be more expensive than what SpaceX is planning to do with Starship.

And if you're building a fully reusable rocket system, then neither size nor fuel matter as much as the simplicity and reliability of launch and landing. And here traditional rocket systems will win on Earth.

On Mars or Moon, with less gravity and atmosphere these systems will be more feasible though since they can possibly launch into orbit without rocket boosters.




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