The high pressure steam used in large power plants, when it leaks through a pinhole in a pipe, comes out with enough pressure to do that. On steel it would need to be thin. On your arm it could go right through the regular thickness and do the amputation. That was the warning I got from plant engineers when I was working in areas with those kinds of pipes.
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I think this technology will used in military or very high technology applications.
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If the pressure is really high then it can just as high pressure water can do the same. It isn't a sharp cut but more like erosion.
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High pressure water can. Not sure about steam.
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Only if it was extremely thin.