The controversial executive tweeted the comment, acknowledging that the volatile digital currency, which has been gaining popularity in part due to high-profile supporters, still shows promise.
"First of all, I think people should not invest their life savings in cryptocurrency," Musk told TMZ in a video shared in the tweet. "To be clear, I think that’s unwise."
Still, the business magnate said, "there is a good chance that crypto is the future currency of earth."
Musk is no stranger to bringing attention to cryptocurrencies, including Dogecoin, which started as a joke in 2013.
"The point is that Dogecoin was invented as a joke as essentially to make fun of cryptocurrency," he told TMZ. "What would be the most ironic outcome? The currency that started as a joke in fact becomes the real currency."
Musk has tweeted multiple times about Dogecoin, which is based on a popular "Doge" meme, and even claimed in 2019 that it might be his favorite cryptocurrency.
However, he has also supported other cryptocurrencies including Bitcoin.
"I do at this point think bitcoin is a good thing, and I am a supporter of bitcoin," Musk previously said when asked about his thoughts on cryptocurrencies during a live-streamed interview on the popular audio chat app Club House. "Many friends of mine have tried to convince me to get involved in bitcoin for a long time."
The Space X founder added: "I think bitcoin is really on the verge of getting broad acceptance by conventional finance people."
FOX Business' Lucas Manfredi contributed to this report.