Cosmic rays actually do cause bit rot. A study in the 80s by IBM placed RAM testers in Boulder, Colorado, Leadville, New York City, and underground in Kansas City. Boulder had 5 times more errors than New York, and Leadville had ten times as many as New York. The elevation of the towns has a lot to do with it, since Leadville doesn't have as much atmosphere to absorb sub-atomic particles at 10,152ft. Boulder is at about 5,000ft. New York is at sea level. However, the shape of the earth's magnetic field has a lot to do with it, too. la Paz has a similar altitude to Leadville's, but is at a different latitude.

The sub-atomic particles that make up cosmic rays knock electrons out of orbit, generating just enough voltage to send a gate into the wrong digital state.

The effects get worse with smaller components. Makers of modern microprocessors have to be very careful about terrestrial radiation, as well. If their chip fab becomes radioactive, it will not turn out working chips.

All this stuff can be found in an IBM research journal somewhere. Specifically, the IBM Journal of Research and Development, Volume 40, Number 1.

So keep your smoke detector away from your chips!