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Mjollnir means "Crusher," due to its devistating blow! In the 13th century Prose Edda,Snorri Sturluson relates Svartalfar Sindri and Brokkr made Mjollnir upon Loki's request.
Norse mythology says Mjollnir has the power to level a mountian in one blow.The most popular tale is Loki calls up the sons of Ivaldi (The makers of gungnir,Odins wepon and skoblaonir,Freyrs foldable boat.) Then Loki bets his head that Sindri and Brokkr couldn't possibly make an Item that was as beautiful as one that the Ivaldi sons could make.
The bet is accepted and they begin working, First sindri puts a pig skin in the furnace and tells his brother to blow untill he pulls it out! Well at the same time Loki digusies himself as a fly and comes and bites Brokkr on the neck, Brokkr dose not flynch.This happens Three more times as the hammer is being created,In the end the brothers win but do not get Loki's head because it was attached to his neck and not part of the deal! So the brothers opt to sew his mouth shut!
Another myth tells that Prym the giant, steals the hammer from Thor and demanded the goddess Frejya in swap for the hammer. So Thor and Loki conspire with the god of duplicity (AEsir) to transform Thor into Frejya so he can reclaim the hammer.At the feast in her honor Prym gets boastful and puts the hammer in Frejyas (Thor's) lap,Thor then rips of the costume and destroys the whole place.
Now days the German Neopagan uses the symbol as a sign of faith worldwide. The logo of mjollnir can be found in places like Bornholm Museum in Denmark also the coat of arms for Torsas Municipality. Also popular in Scandinavia,Heavy metal (Black and Viking metal),Rockers and Biker cultures.