I have always admired the beauty of the damascus knife, but is there any real advantage or dis-advantage to one? I know that they take more time and effort to make them pretty but is that the only reason that they are so expensive???
Yes.
Folded or pattern-welded steel isn't necessarily better or worse than any non-folded modern steel providing the forging, heat treat, and shaping is excellent for both. Several reasons for folding steel, mostly to do with balancing out carbon levels and reducing/spreading out impurities.
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