actually peltiers are the main cause of condensation. when the cold side gets cold, it gets REALLY cold on your better peltiers. now when you have room temperature air and a very cold surface the cold surface will start having condensation form on it. kinda like a glass full of coke. And condensation is a BAD thing to have. so if you don't insulate the peltier properly then you'll have major condesations problems.
there some more for ya. . .
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