
The instructions on the official Ruby on Rails website, were not working for me, so here is how it really works.
The most important part first: You have to setup a password for your account, otherwise it is not going to work.
Then open the Terminal (Go > Utilities > Terminal) and type
sudo gem update –system
hit ENTER.
Type your password and hit ENTER again.
sudo gem install rails
hit ENTER.
sudo gem update rake
hit ENTER.
sudo gem update sqlite3-ruby
hit ENTER.
now Ruby on Rails should run in the latest version!
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