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I make damascus. I've used it and have many customers that do as well. I've had nothing but great reviews, and reports of some very hard use. Sometimes guys seem a little too enthusiastic about their experiences.
The fact is that, if made properly, including appropriate heat treating, damascus should perform as well as the constituent alloys in the mix.
Sometimes people are very impressed with the performance of good damascus steel (such as the popular and venerable 1086/15N20 combination) and I believe that has a lot to do with the fact that few are familiar with the excellent characteristics of good carbon steel blades to begin with. Most people are used to mediocre stainless or other compromise materials. They'd probably be equally impressed with a nicely made 1086 monosteel blade.
For working knives, I'd stay away from a blade that has nickel in the pattern running across the edge and damascus mixes that use non-hardening steel steels (such as mild steel) except under very special circumstances.
Assuming you have a good material to start with, I think the biggest factor to knife performance is geometry.
...damascus should perform as well as the constituent alloys in the mix...
...They'd probably be equally impressed with a nicely made 1086 monosteel blade...
OK, so which damaskus materials can compete with a good high carbon steel?
[edited] also does not 15N20 has nickel in it?
In the sense of the multi-layered composition of Japanese blades, with at least one or two up to several (suminagashi) softer (stainless) layers surrounding a high-carbon core, the functional advantages are obvious.