cedar23 wrote:
....Are you saying that for instance an external SSD drive would help with 4K rather than importing the source file onto the internal drive. Would a 7200 USB3 be ok as I already have one.....
in short: Yes. And yes.
On a normal day, sitting at your Mac…
• your system is busy - and it uses the internal drive to read and write data, some are invisible (swaps) but >1GBs
• your app(s) is busy (with itself,e.g. managing/indexing your Events) - and they use the internal drive to read and write data
• FCPX is busy read/write the Project
• FCPX is busy generating&reading all sorts of cached data, or 'stuff' like audio waveforms
• finally, FCPX has a high demand of a constant streams of data video - huge streams, they scale by used formats
on a very reduced level of engineering we observe 5 sorts of data-streams - all from and to one drive? ; and the one stream with 4k is huge, while watching a simple disssolve you have TWO streams of 4k; creating a compound with 3 clips as a cut-away and watching it asks for four simultanous delivered streams.... are you still convinced, a single internal drive (you play music while editing? check emails? download pics from the cloud....), A Fusion Drive is capable to deliver and receive/write this amount of bits'n bytes?
The speed-tolol with most renommeé is Black Magic Speed Test; aside speed it lists 'best practice values for diff. video formts/codecs'.
This is speed of one of my average usb3 drives:

<click to enlarge>
"Will it work" claims, its good for NTSC/PAL, but even 720/30p could create stutter… (real-life performance differs: this drive handles 1080/50p fine...
Next, my Raido-0:

twice the speed (reading) ... the green checkmarks go up to 1080/60i (real life higher...
an ext.SSD, here my small Samsung SSD performs as...

almost beyond scale, >400mbps
all tests performed direct usb3-connected to MacMini
If you don't trust my very rural experience, listen to expert Larry Jordan
https://larryjordan.com/articles/fcp-x-v-10-1-media-management-collection/?utm_s ource=Larry%2527s%20Newsletter%20-%20140…
(a list to several articles explaining this issue)
or the other usual supects, some participating here on this board
Tom Wolsky http://www.fcpxbook.com/articles/managed-and-external-media.html
Ben Balser (oops, just realizing my link list is old.... )
plus: you need tons of GBs for storing clones of your SDcards, finished play-out projects, 'media' in general, music, graphics, animations, photos, movies............. and of course: backups....
Your question why you should need an external drive, could be answered:
you're right, one is by far not enough, should be at last three extHDD..... 😉
tl;dr:
rule of thumb: one 'platter*' per 'stream**' = flawless handling even of 4k-Multicam on a tiny, old MacMini ....
* platter=individual media; not a partitioned drive; or SSD, allthough no mechanical platters involved
** stream=sources, but the project itself counts as a 'stream' too