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Are Bitcoin Profits Taxable?

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If you are living in the US, then yes. A majority of other countries has yet to acknowledge bitcoin or other crypto as a currency or a commodity but I expected more regulators of other countries to start imposing taxes on crypto profits in the very near future.
The IRS ( Internal Revenue Service ) has declared that it is compulsory to report all sorts of crypto transactions, regardless of their value.
Therefore , each U.S. taxpayer is mandated to keep a record of any purchase , sale , investment or utilization of Bitcoin to pay for commodities or services. Because Bitcoins are regarded as assets , if you utilize Bitcoins for basic transactions like household goods in a convenience store , you would need to pay a capital gains tax.
Here’s a few scenarios that would lead to taxes.

  1. Purchasing goods or hiring services using bitcoin that you acquired via mining.
  2. Purchasing goods or hiring services using bitcoin which you bought from somebody else.
  3. Selling of bitcoins to a third party which you personally acquired via mining.
  4. Selling of bitcoins to a thrid party which you bought from somebody else.

Hope that it helps.

Edited answer