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Mike demonstrates the simplest way to compress a folder full of photos without using special software, which only takes two or three minutes. He has successfully used this method on multiple Windows computers and shows viewers how to compress a folder containing pictures by creating a new folder called "pics" to eventually contain the compressed pictures. By selecting all the pictures in the original folder and copying them into the new folder, the total file size is reduced. This method is specifically designed for Windows computers and may not work on Macs.