As long as you don't end up with a short put imbalance, you could do quite well with this (and, actually this isn't a problem now that there's a futures contract). It's pretty straight forward how to hedge this, especially with a continuously traded asset. The premiums in play would be astronomical, and the spreads ample to justify the risk.I can’t imagine a sane person that would make markets in volatility on this beast. Even if you call the vol right, between gaps, unpredictable liquidity and uncertain regulatory future, most people will stay away
As long as you don't end up with a short put imbalance
Because you can't short BTC to hedge the puts. Which is why the futures mitigates this...but I sure wouldn't want to hold the bag while futures markets are closed.Why is that more of a concern than a short call count?
I did say "sane"I would have, back in the day, I would just have played small.

Because you can't short BTC to hedge the puts
I know you can short the futures. But you can't short the coin itself.That is only an IB issue. An option MM trading Bitcoin options will not clear at IB.