How safe and effective is the Atkins diet?

I`ve been on the Atkins low carb diet now for 4 days. I`ve lost 8lbs already (I`m on the induction phase) I understand that the initial weight loss will mostly be due to water loss but how can I be sure that my continued weight loss will be fat and not water. Atkins has been around for so many years and although I feel a bit nauseous from all the fat and protein consumption its basically the only diet I don’t feel hungry on.