diff --git a/blocks/blockstore/bloom_cache.go b/blocks/blockstore/bloom_cache.go
index 3e4038869a9..1a4c57ac47e 100644
--- a/blocks/blockstore/bloom_cache.go
+++ b/blocks/blockstore/bloom_cache.go
@@ -11,10 +11,10 @@ import (
 	"sync/atomic"
 )
 
-// BloomCached returns Blockstore that caches Has requests using Bloom filter
+// bloomCached returns Blockstore that caches Has requests using Bloom filter
 // Size is size of bloom filter in bytes
-func BloomCached(bs Blockstore, bloomSize, lruSize int) (*bloomcache, error) {
-	bl, err := bloom.New(float64(bloomSize), float64(7))
+func bloomCached(bs Blockstore, ctx context.Context, bloomSize, hashCount, lruSize int) (*bloomcache, error) {
+	bl, err := bloom.New(float64(bloomSize), float64(hashCount))
 	if err != nil {
 		return nil, err
 	}
@@ -24,7 +24,7 @@ func BloomCached(bs Blockstore, bloomSize, lruSize int) (*bloomcache, error) {
 	}
 	bc := &bloomcache{blockstore: bs, bloom: bl, arc: arc}
 	bc.Invalidate()
-	go bc.Rebuild()
+	go bc.Rebuild(ctx)
 
 	return bc, nil
 }
@@ -52,8 +52,7 @@ func (b *bloomcache) BloomActive() bool {
 	return atomic.LoadInt32(&b.active) != 0
 }
 
-func (b *bloomcache) Rebuild() {
-	ctx := context.TODO()
+func (b *bloomcache) Rebuild(ctx context.Context) {
 	evt := log.EventBegin(ctx, "bloomcache.Rebuild")
 	defer evt.Done()
 
@@ -62,8 +61,19 @@ func (b *bloomcache) Rebuild() {
 		log.Errorf("AllKeysChan failed in bloomcache rebuild with: %v", err)
 		return
 	}
-	for key := range ch {
-		b.bloom.AddTS([]byte(key)) // Use binary key, the more compact the better
+	finish := false
+	for !finish {
+		select {
+		case key, ok := <-ch:
+			if ok {
+				b.bloom.AddTS([]byte(key)) // Use binary key, the more compact the better
+			} else {
+				finish = true
+			}
+		case <-ctx.Done():
+			log.Warning("Cache rebuild closed by context finishing.")
+			return
+		}
 	}
 	close(b.rebuildChan)
 	atomic.StoreInt32(&b.active, 1)
@@ -159,6 +169,7 @@ func (b *bloomcache) PutMany(bs []blocks.Block) error {
 	if err == nil {
 		for _, block := range bs {
 			b.bloom.AddTS([]byte(block.Key()))
+			b.arc.Add(block.Key(), true)
 		}
 	}
 	return err
diff --git a/blocks/blockstore/bloom_cache_test.go b/blocks/blockstore/bloom_cache_test.go
index 3b8bb8b9116..bddcee56c69 100644
--- a/blocks/blockstore/bloom_cache_test.go
+++ b/blocks/blockstore/bloom_cache_test.go
@@ -8,18 +8,32 @@ import (
 
 	"github.com/ipfs/go-ipfs/blocks"
 
+	context "gx/ipfs/QmZy2y8t9zQH2a1b8q2ZSLKp17ATuJoCNxxyMFG5qFExpt/go-net/context"
 	ds "gx/ipfs/QmfQzVugPq1w5shWRcLWSeiHF4a2meBX7yVD8Vw7GWJM9o/go-datastore"
 	dsq "gx/ipfs/QmfQzVugPq1w5shWRcLWSeiHF4a2meBX7yVD8Vw7GWJM9o/go-datastore/query"
 	syncds "gx/ipfs/QmfQzVugPq1w5shWRcLWSeiHF4a2meBX7yVD8Vw7GWJM9o/go-datastore/sync"
 )
 
+func testBloomCached(bs GCBlockstore, ctx context.Context) (*bloomcache, error) {
+	if ctx == nil {
+		ctx = context.TODO()
+	}
+	opts := DefaultCacheOpts()
+	bbs, err := CachedBlockstore(bs, ctx, opts)
+	if err == nil {
+		return bbs.(*bloomcache), nil
+	} else {
+		return nil, err
+	}
+}
+
 func TestReturnsErrorWhenSizeNegative(t *testing.T) {
 	bs := NewBlockstore(syncds.MutexWrap(ds.NewMapDatastore()))
-	_, err := BloomCached(bs, 100, -1)
+	_, err := bloomCached(bs, context.TODO(), 100, 1, -1)
 	if err == nil {
 		t.Fail()
 	}
-	_, err = BloomCached(bs, -1, 100)
+	_, err = bloomCached(bs, context.TODO(), -1, 1, 100)
 	if err == nil {
 		t.Fail()
 	}
@@ -29,7 +43,7 @@ func TestRemoveCacheEntryOnDelete(t *testing.T) {
 	b := blocks.NewBlock([]byte("foo"))
 	cd := &callbackDatastore{f: func() {}, ds: ds.NewMapDatastore()}
 	bs := NewBlockstore(syncds.MutexWrap(cd))
-	cachedbs, err := BloomCached(bs, 1, 1)
+	cachedbs, err := testBloomCached(bs, nil)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -53,7 +67,7 @@ func TestRemoveCacheEntryOnDelete(t *testing.T) {
 func TestElideDuplicateWrite(t *testing.T) {
 	cd := &callbackDatastore{f: func() {}, ds: ds.NewMapDatastore()}
 	bs := NewBlockstore(syncds.MutexWrap(cd))
-	cachedbs, err := BloomCached(bs, 1, 1)
+	cachedbs, err := testBloomCached(bs, nil)
 	if err != nil {
 		t.Fatal(err)
 	}
@@ -73,14 +87,15 @@ func TestHasIsBloomCached(t *testing.T) {
 	for i := 0; i < 1000; i++ {
 		bs.Put(blocks.NewBlock([]byte(fmt.Sprintf("data: %d", i))))
 	}
-	cachedbs, err := BloomCached(bs, 256*1024, 128)
+	ctx, _ := context.WithTimeout(context.Background(), 1*time.Second)
+	cachedbs, err := testBloomCached(bs, ctx)
 	if err != nil {
 		t.Fatal(err)
 	}
 
 	select {
 	case <-cachedbs.rebuildChan:
-	case <-time.After(1 * time.Second):
+	case <-ctx.Done():
 		t.Fatalf("Timeout wating for rebuild: %d", cachedbs.bloom.ElementsAdded())
 	}
 
diff --git a/blocks/blockstore/caching.go b/blocks/blockstore/caching.go
new file mode 100644
index 00000000000..689a9b5fc12
--- /dev/null
+++ b/blocks/blockstore/caching.go
@@ -0,0 +1,42 @@
+package blockstore
+
+import (
+	"errors"
+
+	context "gx/ipfs/QmZy2y8t9zQH2a1b8q2ZSLKp17ATuJoCNxxyMFG5qFExpt/go-net/context"
+)
+
+// Next to each option is it aproximate memory usage per unit
+type CacheOpts struct {
+	HasBloomFilterSize   int // 1 bit
+	HasBloomFilterHashes int // No size, 7 is usually best, consult bloom papers
+	HasARCCacheSize      int // 32 bytes
+}
+
+func DefaultCacheOpts() CacheOpts {
+	return CacheOpts{
+		HasBloomFilterSize:   512 * 8 * 1024,
+		HasBloomFilterHashes: 7,
+		HasARCCacheSize:      64 * 1024,
+	}
+}
+
+func CachedBlockstore(bs GCBlockstore,
+	ctx context.Context, opts CacheOpts) (cbs GCBlockstore, err error) {
+	cbs = bs
+
+	if opts.HasBloomFilterSize < 0 || opts.HasBloomFilterHashes < 0 ||
+		opts.HasARCCacheSize < 0 {
+		return nil, errors.New("all options for cache need to be greater than zero")
+	}
+
+	if opts.HasBloomFilterSize != 0 && opts.HasBloomFilterHashes == 0 {
+		return nil, errors.New("bloom filter hash count can't be 0 when there is size set")
+	}
+	if opts.HasBloomFilterSize != 0 {
+		cbs, err = bloomCached(cbs, ctx, opts.HasBloomFilterSize, opts.HasBloomFilterHashes,
+			opts.HasARCCacheSize)
+	}
+
+	return cbs, err
+}
diff --git a/cmd/ipfs/daemon.go b/cmd/ipfs/daemon.go
index 5eea1595b82..52264715fb4 100644
--- a/cmd/ipfs/daemon.go
+++ b/cmd/ipfs/daemon.go
@@ -229,7 +229,9 @@ func daemonFunc(req cmds.Request, res cmds.Response) {
 
 	// Start assembling node config
 	ncfg := &core.BuildCfg{
-		Repo: repo,
+		Repo:      repo,
+		Permament: true, // It is temporary way to signify that node is permament
+		//TODO(Kubuxu): refactor Online vs Offline by adding Permement vs Epthemeral
 	}
 	offline, _, _ := req.Option(offlineKwd).Bool()
 	ncfg.Online = !offline
diff --git a/core/builder.go b/core/builder.go
index f602db1d6b1..62e9319b947 100644
--- a/core/builder.go
+++ b/core/builder.go
@@ -27,6 +27,10 @@ type BuildCfg struct {
 	// If online is set, the node will have networking enabled
 	Online bool
 
+	// If permament then node should run more expensive processes
+	// that will improve performance in long run
+	Permament bool
+
 	// If NilRepo is set, a repo backed by a nil datastore will be constructed
 	NilRepo bool
 
@@ -131,7 +135,12 @@ func setupNode(ctx context.Context, n *IpfsNode, cfg *BuildCfg) error {
 
 	var err error
 	bs := bstore.NewBlockstore(n.Repo.Datastore())
-	n.Blockstore, err = bstore.BloomCached(bs, 256*1024, kSizeBlockstoreWriteCache)
+	opts := bstore.DefaultCacheOpts()
+	if !cfg.Permament {
+		opts.HasBloomFilterSize = 0
+	}
+
+	n.Blockstore, err = bstore.CachedBlockstore(bs, ctx, opts)
 	if err != nil {
 		return err
 	}
diff --git a/exchange/bitswap/testutils.go b/exchange/bitswap/testutils.go
index d42278e710c..a4be8d06fa3 100644
--- a/exchange/bitswap/testutils.go
+++ b/exchange/bitswap/testutils.go
@@ -93,7 +93,8 @@ func Session(ctx context.Context, net tn.Network, p testutil.Identity) Instance
 	adapter := net.Adapter(p)
 	dstore := ds_sync.MutexWrap(datastore2.WithDelay(ds.NewMapDatastore(), bsdelay))
 
-	bstore, err := blockstore.BloomCached(blockstore.NewBlockstore(ds_sync.MutexWrap(dstore)), bloomSize, writeCacheElems)
+	bstore, err := blockstore.CachedBlockstore(blockstore.NewBlockstore(
+		ds_sync.MutexWrap(dstore)), ctx, blockstore.DefaultCacheOpts())
 	if err != nil {
 		panic(err.Error()) // FIXME perhaps change signature and return error.
 	}