Jim, the spike is used to untie knots. As you will appreciate, knots are placed under a lot of tension on boats (or swell from water when natural materials are used). So there are times when extra leverage is needed to undo them. Inserting the marlin spike inbetween the strands allows you to wriggle the knot loose enough to untie it.
Another use is when you are splicing ropes to work the individual strands apart. These spikes have a lot of utility on boats where so much was held together by rope and canvas.
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