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It's used for when you are playing Blu-Ray movies, copy-right music DVDs, cable boxes and streaming devices. It's a feature which protects digital content from illegal copying.
For example: HDCP is required to stream Netflix from a device connected to your TV. Same deal with the Roku streaming service, etc.
So if you can't play your movies, music or stream content anymore, just understand that might be why. Disabling HDCP shouldn't really affect performance that much either? I guess it could increase input lag very slightly due to it's encrypting the signal across. It's not something I would notice on my 240Hz OLED with 0.03 ms response time, so I can't test it myself.
What I can say is that it definitely makes my monitor a lot more responsive when doing things like rebooting or source selecting. Prior to disabling HDCP my screen was always black for ages when detecting active input, but now after disabling it the screen shows immediately. For that alone it's worth me disabling it.
Since doing this I've not encountered one issue with playing media content. Only on PS4, if you disable this you can't watch YouTube or Netflix but not the case on PC at least for YouTube.