I upgraded my environment from Ruby 2.0.0 to 2.2.3.
I also upgraded (overwrite) DevKit, and re-run ruby dk.rb install.
I removed Gemfile.lock and ran bundle
@user1185081 's solution worked for me in a windows machine. I ran following commands and worked like magic:
$ cd C:\RailsInstaller\Ruby2.2.0\lib\ruby\gems\2.2.0\gems\bcrypt-3.1.10-x86-mingw32\ext\mri
$ ruby extconf.rb
$ C:\\devkitvars.bat (assuming you have devkit installed)(Ran this instead of running "make" because it was not recognized as an internal or external command)
$ make install