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Supposedly during WW II the Germans had a very healthy, and almost mystical, fear of the M2 and its capabilities.
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Allied artillery holds that crown.
As far as the .50 BMG capabilities. It all depends on the type of ammo being used.
Being a large enough round it comes in all kinds of flavors. From regular Ball, to armor piercing and HE and Incendiary.
For instance, a regular Ball .50BMG will not explode you, but take the same cartridge and fire a HE bullet and it will most definately explode it's target. Read the wiki entry and go to the "Military Cartridge" types and it will list all kinds of .50 BMG flavors.