This attribute can be applied to both files and folders. It still exists, but it’s just not visible. Even if you navigate into the Finder window where the file should appear, you won’t see the file. When you hide files on macOS, you set a special attribute that makes it invisible to Finder.
What does it mean when you hide files on macOS? Keep in mind that this doesn’t remove the file from your system or encrypt it. This will make the file invisible until you choose to reveal it or turn the invisibility off. Your Mac has a few built-in ways to hide files on macOS from Finder windows.