Potassium is the most abundant electrolyte inside your cells. Around 90% of your body's potassium is stored intracellularly, which means it's working at the most fundamental level of how your cells function.
It works in partnership with sodium through something called the sodium-potassium pump, one of the most important mechanisms in human physiology. This pump moves sodium out of cells and potassium into cells continuously, and in doing so it regulates nerve signalling, muscle contraction, circulation, acid-base balance and cellular hydration all at once.
When potassium is adequate, everything communicates properly. Muscles fire when they're supposed to. Nerves transmit signals efficiently. Your heart beats with a steady rhythm. Your cells hold onto fluid rather than letting it escape.
When potassium drops, those processes start to degrade. And given that most people are running below optimal levels on a daily basis, this is not a theoretical concern.