Whether coconut oil is good for weight loss or not, it is becoming an increasingly popular component of a weight loss diet. So how justified is this in view the fact that fats and oils are not normally regarded as being the best form of food to take if you want to lose weight? 
Apart from any  other considerations, fats are actually very important components of any  diet. Consider, for example, how many vitamins are fat soluble:  vitamins A, D, E and K are all fat soluble, and without fats in your  diet vitamins would not be able to circulate and be taken to where they  do most good. Fats are also essential building blocks for hormones and  cell membranes. In short, you cannot survive without fats. Coconut oil  is a fat.
In referring to coconut oil here, we are discussing virgin oil, not the refined form that is high in cholesterol.  Refined, or processed coconut oils, is hydrogenated, which renders it  more in nature to the longer chain fatty acids. Virgin coconut oil  contains what are known as medium chain fatty acids (MCFA), which are  easily metabolized by your liver into energy.
The longer chain  fatty acids, also called triglycerides, are not easily broken down into  smaller components, and tend to be stored in the body as fat. This fat  can be particularly dangerous if stored round the midriff, and so long  chain fatty acids are dangerous to your health. This does not apply to  MCFAs, and a possible mechanism for this is discussed later.
An  inability to distinguish between the different types of fats and oils in  your diet is largely due to a lack of education in the chemistry of  fats, and the lumping together of all fats and oils under the 'fatty'  flag. Perhaps it is the use of the word 'fat' for the overweight  condition and the fact that the triglycerides and other chemicals are  known generically as 'fats' that triggers a connection between the two,  but although this is logical, and in some cases justified, it is not  always the case. There are fats and fats, just as there are lubricating  oils and greases, and edible cooking oils and greases.
The fatty  acids in coconut oil are composed of relative small carbon chain  lengths. Caprylic acid and capric acid contain 8 and 10 carbon atoms in  the backbone compared to the 18 of the stearic acid that is commonly  contained in animal fats. The longer the carbon chain in the molecule,  the more difficult it is to break down, and the more likely it is to be  stored in the body as a dense fatty deposit that places a strain on the  heart.
Due to the shorter chain length the medium chain fatty  acids hold less energy per unit weight. Apart from any other reasons  then, coconut oil contains fewer calories than other fats and so if used  as the bulk of your fat requirement, will be less liable to generate  body fat. Not only that, but as inferred earlier, due to the smaller  molecule these calories are more readily released as energy for use by  your body rather than stored unused.
However, that is not the  whole story on either count: coconut contains saturated fats, and also  monounsaturated and polyunsaturated fats, although in small quantities.  These, however, are present in only small amounts, although would still  be expected to undergo oxidation and produce the rancid taste commonly  found in aged unsaturated oils and fats. However, even after a year this  does not happen, which indicates that coconut oil possesses some form  of antioxidant properties. This is confirmed by the fact that people  eating a diet rich in coconut oil has less of a need for the strong  oil-soluble antioxidant vitamin E.
 In fact, the  metabolism of fats is usually connected with the carnitine transport  system in the mitochondria, although the shorter chain fatty acids do  not need carnitine for their metabolism. What happens then is that  because carnitine promotes oxidation during stress, and causes oxidative  damage to body cells, its absence in metabolism of coconut oil fatty  acids results in a reduction in the oxidation that degrades unsaturated  fats. Hence the lack of rancidity.
Taking this further, then,  this lack of oxidation infers that those that take a diet rich in  coconut oil (for example using it for cooking rather than animal and  vegetable oils containing longer chain fatty acids) should be partially  protected against cell oxidation in general. Oxidative effects such as  aging, cardiovascular diseases and some cancers should be reduced, and  studies have shown this to be the case. Those consuming coconut oil  rather than other oils tend to age more slowly, suffer less from heart  disease and tend to experience fewer incidences of cancer.
With  regard specifically to weight loss, it is believed that consumption of  medium chain triglycerides, as opposed to longer chain triglycerides,  results in a higher rate of thermogenesis, or the conversion of  carbohydrates to energy (fats are also carbohydrates). The first step in  this process requires the presence of Coenzyme A in the form of the enzyme acyl-CoA-dehydrogenase, and measurement of  the activity of this enzyme has indicated that medium chain  triglycerides exhibit much higher expenditure of energy than the  metabolism of long chain triglycerides when being converted to fatty  tissue. However, though the energy used up in this reaction, known as  lipogenesis, was higher, the formation of fatty tissue was the same.
Hence,  MCA uses more energy to produce the same amount of fat as LCA, and  therefore, although more energy is used up, no new fat is generated by  the liver. Since your dietary fat intake can ultimately have only three  fates: burned as energy, stored as the emergency energy source glycogen,  or deposited as fat, then it is logical that the more energy generated  then the less fat will be stored.
In this way, coconut oil, with a  high content of medium chain fatty acids, has a scientific explanation  for causing weight reduction when used as a source of fat in the diet  rather than animal or other vegetable fats or oils. It is converted to  energy rather than fatty tissue, and if you exercise to use up that  energy then your weight loss can be significant.
What this theory  also states, however, is that coconut oil should be used as a  replacement for other fats, and not in addition to it. If you take  coconut oil in addition to your normal diet, do not expect to see  results. 
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