You cant bid on keywords for natural search results. You can just use them if you want them but it will be hard to rank for them and it will take you a long time. There is no bidding involved unless using PPC!
Ok, now I understand. When you are talking about these things, you need to use the right terms! If you think you can compete with the top dogs on the competitive keyword then go ahead, it will lead to a lot of traffic if you get on top, but there will be a long road ahead!
If the keyword has a good amount of searches then go for it. Take note that most searched keywords brings a lot of traffic. BTW 160,000 competitors is small enough...there's a high possibility for a site to be on top of SERPs if the keywords are used the right way.