"NVT Ratio (Network Value to Transactions Ratio) is similar to the PE Ratio used in equity markets."
The NVT is currently high, but not out of control like it was in 2014. This is the best dataset I've seen for working out if the network is actually being used in a way that matches the valuation, and I think will become invaluable when the CME Bitcoin Futures market opens.
Bitcoin are (effectively) infinitely divisible. Money supply creation on it's surface is meant to replace notes that age out of supply. Inflationary growth is a byproduct (albeit a good one). Bitcoin supply will also age out (as people lose access to private keys). This creates a natural inflationary action that pushes the value up. No new coins need to be created, just take what's in the supply and break it up into smaller values. This also removes the politics out of the money supply.
Many users are already using mBTC as a base unit (0.001BTC) as it's much easier to transact with at a human level. 1mBTC currently is ~ $6.50. The current smallest unit (1 Satoshi) is worth 0.0001USD, plenty of room for further unit division. It's been confirmed on a technical level that moving that division deeper is possible, but unnecessary in the short term.
https://wiki.archlinux.org/