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The color blue stops the body from producing a sleep hormone called melatonin
I used to have a blue nightlight and it gave me horrible insomnia
That's not true. Looking at a color would not stop your body from producing a hormone like that.
In fact, blue is actually a calming color and -more likely- to make you fall asleep if anything.
As for the blue nightlight causing insomnia, that is most likely from it being too bright. I have a clock radio with a bright blue light, and I usually have to cover it with something.