The technology billionaire was speaking at The Word conference with Twitter CEO and leading crypto advocate Jack Dorsey on Wednesday, along with his remarks Bitcoin Rivals above $2,000.
“Bitcoin does a few things well, and it continues to grow… The utility for the average person is not great but has a lot of potential,” he said.
“On balance I support bitcoin and cryptocurrencies in general.”
Earlier this year, the Tesla boss made headlines after announcing that his company would accept bitcoin as payment for electric cars, though later backtracked, citing environmental concerns about bitcoin’s network.
Following a major crackdown in China over bitcoin mining operations, the cryptocurrency has shifted more toward renewable energy sources, which were largely powered by coal-fueled power plants.
Tesla also announced a $1.5 billion investment in bitcoin in February, making it the world’s second-largest corporate investor behind software firm Microstrategy.
A small portion of it was later sold off, but most remains with Tesla, despite the recent price drop.
After hitting an all-time high above $64,000 in mid-April, bitcoin price has nearly halved from its peak price and is currently trading above $32,000.
The market’s volatility has often been attributed to remarks made by Mr. Musk, with both the price rise and crash coinciding with Tesla’s acceptance and rejection of the cryptocurrency.