Why would that be absurd? "Bitcoin" is an arbitrary unit, you can rescale it. For example, 1 satoshi = a hundred millionth BTC. In your example, the rate would

Why would that be absurd? "Bitcoin" is an arbitrary unit, you can rescale it. For example, 1 satoshi = a hundred millionth BTC. In your example, the rate would be 1 kilosatoshi = $1.70. A nice and imaginable rate if it was a regular currency. The thing is: you can either call current (and possibly future) bitcoin absurdly overvalued (with its real value close to zero), or the early-stage bitcoin absurdly undervalued (with its real value close to the "asymptotic" value). I personally prefer the latter, or better: acknowledge that the "value" is determined by the market, and the "real" value is dynamic in time. The only question is: is the current exchange rate rational, or a craze? I believe, assuming nothing catastrophic happens (bitcoin outlawed, or it is abandoned because the network cannot handle the number of transactions anymore), the current rate is rational (close to the instantaneous "real" value), and will continue to rise (and approach the asymptotic "real" value) in future. Full disclosure: I am not 100% convinced (and thus stupidly sold quite some BTC before the current hike), but I'm betting some coffee money that BTC - if it is staying with us - will go "to the moon".