The word 潜在 is formed by combining two characters: 潜, which means "hidden", "submerged", or "latent", and 在, which means "to exist", "to be present", or "at". Conceptually, they merge to create a single idea where 潜 modifies 在; thus, the compound literally conveys the state of "existing in a hidden manner" or "being latently present", capturing the notion of something that is not immediately apparent but has a real, underlying existence or possibility.