Encrypted Android phone - sharing files I am using Sony Xperia M with Android version 4.3 (Jelly bean) with official update.

Android allows me to encrypt my files. You can get this menu: Settings --> Security --> Encrypt phone. Now I want to know, if I do this process, how is with sharing files by Bluetooth, e-mail or wi-fi?
It will share files fine. 

Its more for security if your phone was stolen etc. Once you have encrypted your phone, you will be prompted for the password to 'decrypt storage' everytime you turn the phone on. Once the phone is on, the files are accessible and readable. However if your phone was lost / stolen and was restarted, the data on there would be completely useless without your password.