bcrypt-ruby – You don’t have bcrypt-ruby installed in your application [SOLVED]

I got this really annoying error “bcrypt-ruby – You don’t have bcrypt-ruby installed in your application” when I was trying to use blowfish secure password on my rails application. After few hours finding the solution, I finally have it fixed. I use Ruby 2.0 and Rails 4.0.0 and below is how to solve this issue:

1) Uninstall any previous version of bcrypt you have on your system. Go to command line, on the root of your application, type this:

2) Update Rails version to 4.0.1 and install bcrypt version 3.1.2. To do this, open your Gemfile from the root of your application, and change the info there into this:

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