Hey @KFSys thanks for answering.

Here is my configuration file of domain.com (/etc/nginx/sites-available/domain.com). I have replaced the comments with dots to make it easier to read.

# comments
# ...

server {
        listen 80;
        listen [::]:80;

        # ...

        root /var/www/domain.com/html;

        # Add index.php to the list if you are using PHP
        index index.html index.htm index.nginx-debian.html;

        server_name domain.com www.domain.com;

        location / {
                # First attempt to serve request as file, then
                # as directory, then fall back to displaying a 404.
                try_files $uri $uri/ =404;
        }

        # ...
}

I did remove the digitalocean file in the same directory, however nginx did not run after I restarted it. Once I copied default over to digitalocean file it worked again.

My error.log and error.log.1 files where blank but my access.log and acces.log.1 files were filled with information.

I tried to test if my domain2.com worked and since I did not own that domain name I changed so that domain2.com points to the droplets ip address which worked flawlessly and reached to the correct server block in chrome. Both configuration files looks identical.
Can it be a problem in the DNS settings?

I also noticed that my /etc/nginx/conf.d is empty. Maybe this is a problem?

Thanks for the help,
ulvar