The reason infinity $100 bills is more valuable than infinity $1 bills: it takes less effort to utilize the money.
Let’s say you want to buy a $275,000 Lamborghini. With $1 bills, you have to transport 275,000 notes to pay for it. That will take time and energy. With $100 bills, you have to transport 2750 notes. That’s 100x fewer, resulting in a more valuable use of time and energy.
Even if you had a magical wallet that weighed the same as a standard wallet and always a had bills of that type available to pull out when you reach in. It’s less energy to reach in a fewer number of times.
Let’s toss in the perspective of the person receiving the money, too. Wouldn’t you rather deal with 2750 notes over 275,000, if it meant the same monetary value? If you keep paying in ones, people will get annoyed. Being seen favorably has value.