Yup, classic way do drink Absinthe is to drip water over a sugar cube, which rests on a spoon over the glass. 5:1 water to absinthe.
Bastardized Czech method is to light a shot of it on fire and down it.
Thujon is the psychoactive ingredient (from Wormwood), but you’d have to drink an awful lot to get an effect, IMO. You’d be blind drunk by then anyway…
Stories of people going mad probably related to poor distilling techniques/contaminants
Kind of fun thing to do for a party, if one is so inclined, as there is a bit of ‘show’ involved.