WHAT IT IS AND ITS UNKNOWN ORIGINS

Fado is a word that stems from Faith, Destiny, and though most historians of this kind of Portuguese music with generally sad melodies and fatalistic lyrics focus on dates and styles, such as the Lisbon style and the Coimbra style sang by University students, wrapped in black capes.
The origins are unknown and speculation is possible since it is thought to be a blend of many things.
The illustration on the left shows a version of a Medieval instrument that is very similar to the Portuguese Guitar which has 10 strings, and used on Fado.
This national song had its historical recorded origins only in the 19th. century, but apart from the songs of the Portuguese sailors of the Discoveries, the Brazilian influence of the slaves are all part of the speculations. I dare go a little earlier, when Lisbon was conquered from the Moors in 1147 by the combined forces of the first Portuguese King Afonso Henriques and the Crusaders, not all moors left and the Lisbon Cathedral was built over the ruins of a mosque.
Therefore the fado also carries some sounds of the Almuaden, the men who called the faithful to pray on top of the minarets.
It is not casually that one of the areas of Lisbon is named Mouraria, dominated by the Castle of S. Jorge (St. George) where part of the Moorish (hence Mouraria) walls.
However, in its early recorded beginnings, the Fado was sung in neighborhoods like Mouraria, Alfama, full of Medieval alleys, in humble taverns, by prostitutes and brigands. It was not appreciated by other social classes.
The painting above shows one of those scenes, but specifically it represents Severa one of the earliest fado singers and follower of the oldest profession, painted much later by José Malhoa in 1910.
Nonetheless by the early 20th. century the romantic approach to the fado by intellectuals and by 1912 Avelino de Sousa publishes a book called The Fado and its Censors.
The ghetto song begins to take its place and find appreciation away from its confined environment.
By 1924 a periodical publication called Guitars of Portugal further pushes fado to wider realms.
As it becomes socially accepted, the fado begins to take a new identity as the musical symbol of the Portuguese identity. In fact, in 193
8 the first restaurant and fado house is opened in one of the traditional neighborhoods that now start to become fashionable. It is the Adega Machado (Machado Cellar). More would open through the years and are now tourist spots where people have dinner and then the typical silêncio, vai-se cantar o fado (silence now, fado is going to be sung) announcement is made.
In 1939 the greatest fadista (fado singer) of all times, Amália Rodrigues makes her debut at the Retiro da Severa (Severa's Place). Amália Rodrigues would become one of the greatest icons of Portugal, passed away in 1999 after a 60 years career that took her to all corners of the world and to the world's top stages.
The entire nation mourned her passing and still today, many amateur singers go to her tomb and sing in front of it.
Amália was the first to deeply revolutionize fado by choosing Portugal's top poets and singing their poems, thus bringing a higher cultural content to fado.
 

NEW GENERATIONS
New generation fadistas, following the diva's example, modernized fado.

Mariza (click on the link and listen) more songs here is a spectacular new generation singer whom I had the pleasure to meet and dine with my family only to note how simple and modest this great singer is. Just a human being. Among her presentations she has been to Carnegie Hall.

Dulce Pontes is another great new generation fado singer who sang with Andrea Bocelli, while Enio Morricone composed for her. Hear it here. Notice those slight voice changes? That is the root of fado. Only from the traditional guitar has been replaced by an orchestra.

 
Much more could be said, specially listening to Amália Rodrigues, the modern classical style. You can hear two sound clips here. Noticed the guitar sound and style?
 
CONCLUSION

Fundamentalist fado lovers will also connect the national song with bullfighting. But while they're loosing ground, there is a wide span of styles in a much freer and wider environment and style avenues.
This is not, however a song for women. Men also sing and there are many great male singers, such as Carlos do Carmo possibly the most famous fadista in the same style of Amália.
Here you can hear some of his song clips. Again notice how the guitar permanently dialogues with the singer in classical fado. Such is an aspect of Portuguese culture and its evolutions.