Bitcoin uses advanced algorithms to compress and encode information in a way that allows it to be securely and efficiently transmitted across its decentralized network. This process is known as cryptography and involves a combination of techniques such as hashing, encryption, and digital signatures.

In terms of the amount of information that Bitcoin can compress, it's difficult to give a precise answer as it depends on the specific use case and the amount of data being transmitted. However, Bitcoin has demonstrated its ability to handle large amounts of data and transactions with minimal processing times and fees.

Overall, it's important to remember that Bitcoin is a complex technology that has many applications and uses beyond just financial transactions. As it continues to evolve and gain adoption, I believe we will discover even more ways in which it can be used to improve our lives and our world.